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Fiscal Notes
October 1997 Page 1 |
In this issue:
Page 1
The Growing Economy
The Texas Landscape
Large Metros / Border Area / Central Texas
Gulf Coast / West Texas Plains
Page 2
Economic Destiny
From the Comptroller: No More 'Business as Usual'
Stake Your Claim
Open For Enrollment
Texas stats -- Fiscal and economic data
Enjoying healthy employment gains, Texas is wrapping up another year of solid economic performance. Some areas of the state have drawn closer to recovering from previous economic troubles.
Overall state employment growth was 2.6% over the last year. The state gained more than 200,000 new jobs to reach a total of 8.4 million in mid-1997.
Since 1991, the areas of fastest population growth have been in the lower Rio Grande Valley and Central Texas.
Texas urban areas have seen a good measure of prosperity in recent years. Dallas, with its diverse economy, enjoyed the state's second fastest growth rate and generated the most jobs. Austin continues to build its reputation as a high-tech mecca, while Houston is capitalizing on diversification and a rebounding energy market.
This year, the economic picture for border counties began to brighten in the aftermath of the 1994 peso devaluation. Mexico's fiscal crisis had spilled over to Texas border retailers, especially those who catered to Mexican nationals. With Mexico's economy continuing to improve, retail activity along the border is building steam and feeding job growth in cities such as Laredo and El Paso. Construction has become the fastest-growing sector in the border areas.
Agriculture producers welcomed overdue rains this year and the end of a widespread drought that was reminiscent of the parched 1950s.
Meanwhile, federal defense cutbacks continue to cast a long shadow. San Antonio leaders are immersed in strategic planning to mitigate the upcoming closure of Kelly Air Force Base, which could jeopardize thousands of jobs. Texarkana is in the midst of dealing with the downsizing of the Red River Army Depot, and Corpus Christi faces potential workforce reductions at one of its four military installations.
On the whole, the news is positive. Nearly all of Texas' regional economic "boats" have been lifted by a strong state economy and a continued national economic expansion.
In this issue, Fiscal Notes profiles all 27 metropolitan statistical areas.
THE TEXAS LANDSCAPEAustin-San Marcos
After posting one of the highest employment growth rates in the nation in the 1990s, the Austin-San Marcos metro economy is cooling off a bit, which is not unwelcome news for an area whose economy had been running at full tilt for about four years.
From June 1996 to June 1997, 5,600 jobs were added, representing a 1% growth rate. In contrast, the 1990-to-1996 growth was an annual 5.2%. Overall employment is 544,000. The source of Austin's economic strength has been production of computer chips, personal computers and associated hardware. Seven of the area's 10 largest manufacturing employers, including Motorola, IBM, Advanced Micro Devices and Dell Computers, make semiconductors, personal computers or machinery to build semiconductors. When production begins at Samsung Electronics in early 1998, eight of the area's 10 largest employers will be concentrated in these industries.
But as evidenced by the decline in the "book-to-bill" ratio, which tracks the health of the computer and semiconductor industries, these employers faced leaner times over the last year and, in some cases, reduced employment levels. Cirrus Logic cut 100 jobs at its Austin subsidiary, Crystal Semiconductor.
This computer slowdown took its largest toll on the construction industry. Net in-migration dropped below 20,000 in 1996 for the first time in several years--still a good growth rate, but slowing. Without the continuous influx of new consumers, residential development slowed in 1997 amid signs of overbuilt housing. Austin's single-family construction permits were up 43% in 1996, but prices rose only 2.7%, revealing a growing softness in the market.
Dallas The Dallas metro economy, which brings together telecommunications, trade, health care, financial services and air travel, added the most jobs of any metro and ranked second in terms of percentage increase from mid-1996 to mid-1997. Employment totaled 1.7 million, an increase of 69,600 jobs.The service, trade and construction industries saw strong employment gains. The service sector added 28,000 jobs from June 1996 to June 1997, while trade and construction added 15,700 and 5,600 jobs, respectively.
The emergence of Dallas' new light rail system spawned avenues for additional growth in construction, service and trade. The Dallas Area Rapid Transit (DART) rail line, which opened for commuter service in mid-1996, exceeded ridership estimates, and developers noticed. A planned $150 million Adam's Mark Hotel in downtown will offer front-door access to the rail line. In addition, many downtown office buildings are getting multimillion-dollar face lifts as demand for office space remains strong.
Other projects located along the rail system are on the drawing board. These projects, in conjunction with retail mall growth to the north and the continued development of Las Colinas, should push the metro's construction, trade and service employment even higher.
Major corporate relocations have contributed jobs too. Blockbuster Entertainment's 1996 move from Fort Lauderdale, Florida, to Dallas' Renaissance Tower brought 900 new jobs, and the video and music giant broke ground on a $35-million, 800,000-square-foot distribution and data center in McKinney that will employ 1,900 people. Railroad giant Union Pacific Corp. and GTE Corp., a leader in the telecommunications industry, both plan to relocate to the metro.
El PasoEl Paso County has rebounded briskly from the 1994 peso devaluation. Retail sales for 1996 topped $5 billion--a record high--and exceeded the 1995 total by $433 million. The employment base gained 5,100 jobs from June 1996 to June 1997 to stand at 239,900.
Most job growth occurred in trade and services--3,900 jobs in all, equaling three-fourths of new jobs created between June 1996 and June 1997. Construction employment swelled by 1,000 jobs in the same period to stand at a record-high level, while manufacturing employment dropped by 1,100. Government remains important to the economy thanks to the University of Texas-El Paso and Fort Bliss.
The value of single-family building permits reached $125 million in 1996--down from $140 million in 1994 and $128 million in 1995. However, multi-family construction made strong gains as the number of permits issued soared from 370 in 1995 to 1,040 in 1996.
The service sector added 2,800 jobs from June 1996 to June 1997 to reach 54,300. The sector is growing in business, health and social services. More business service jobs are expected with the relocation to El Paso of MCI and AT&T telemarketing operations.
El Paso serves as a vital retail trade center for far West Texas and northern Mexico--serving 1.8 million inhabitants in the El Paso-Juarez area alone. Wholesale and retail trade employs about one-fourth of the workforce. Overall, the trade sector was hurt by the peso devaluation, with downtown retailers hit the hardest.
Now, increased retail sales indicate that border shoppers are buying again in the U.S. The wholesale and retail trade sectors added 1,100 jobs to stand at 57,200 jobs in June 1997--the highest level since the peso devaluation.
Manufacturing jobs fell during the last year due to layoffs in the apparel industry. However, plans for local business expansions and new businesses are indicative of El Paso's efforts to diversify and strengthen its manufacturing sector. Three computer manufacturers, an air conditioning plant and a tile manufacturer plan to locate in El Paso, adding 1,700 new jobs and investing more than $50 million.
Along with trade opportunities under the North American Free Trade Agreement, has come increased concern over the area's environment and border infrastructure. Bi-national projects are under way to boost monitoring of air quality and to upgrade wastewater treatment, collection plants and international bridges. A federal pilot project is attempting to expedite border freight crossings.
Fort Worth-ArlingtonThe trade, service and manufacturing sectors in the Fort Worth-Arlington metro account for nearly 70% of employment, and the majority of employment gains have occurred in these sectors. Employment increased by 21,400 jobs from mid-1996 to mid-1997, reaching 697,900.
Intel Corp. is building a $1.3 billion plant near Alliance Airport that will manufacture advanced logic computer chips. The plant will bring more than 1,000 jobs to the area when it opens in 1999.
Downtown Fort Worth is brimming with multifamily construction. Two projects under construction are expected to alleviate the demand for downtown residences. Lincoln Properties is building 356 apartments, and Hillside Development, a public-private partnership, has a 179-unit project under way that will provide low-income housing.
North of Fort Worth, the newly opened Texas Motor Speedway and the growing Alliance project have drawn residential, hotel and retail developers.
In Arlington, 3.6 million square feet of office space is being leased at an increasing pace. The office occupancy rate topped 90%, as relatively low rents fueled demand for office space.
Arlington is also a hotbed for hotel construction to serve increasing numbers of business and weekend travelers. Since early 1997, one new hotel has opened, and construction has begun on four others. Nearly 800 rooms were added in the last two years; another 550 were expected to open in 1997.
HoustonThe Houston metro economy has displayed steady growth in the 1990s. By mid-1997, employment was up 2.2% from mid-1996, a modest uptick from the 1.7% annual growth rate seen from 1990 to 1996.
Metro employment swelled by 39,300 over 12 months to top 1.8 million in mid-1997. Houston's prosperity stems from a mix of good gains in previously poorly performing industries, coupled with solid but slow growth in other economic areas.
Oil and gas drilling activity has made a long-awaited comeback. In late August, the Gulf of Mexico's mobile rig utilization rate topped 95%, the highest in years. Thirty-one offshore rigs were under construction or conversion, up from six a year earlier, and the U.S. rig count topped 1,000 for the first time since the Persian Gulf war. Employment in oil and gas drilling services rose by 1,200 jobs in 1996, the largest gain in more than a decade.
Competition in the health care market appears to have affected this sector. From 1987 to 1992, health care employment grew at an annual rate of 5.4%. Then, as managed care programs attempted to rein in health care expenditures, job growth slowed to 1.8% per year. Metro employment in home health care services--a sector seen as vital to controlling costs by shifting care from high-cost hospitals to lower cost homes--grew by 5,600 jobs in the last two years, whereas hospital-based employment in Houston dropped by 4,500 jobs.
The outlook is promising in petrochemicals, another of Houston's traditional economic engines, with new projects such as Arco Polymers increasing polypropylene capacity at its Chocolate Bayou chemical plant; Fina Oil and Chemical expanding a high-density polyethylene facility in the Bayport area of Pasadena; and Shell Chemical building a new phenol plant in Deer Park.
Houston appears ready to develop new specialties to serve changing domestic and international markets. As deregulation in the electric utility market progresses, Houston could benefit greatly from spin-off businesses. The city's leading role in energy services could even result in the creation of some form of a power exchange market. Engage Energy, a joint venture between Coastal Corp. and Westcoast Energy, plans to set up headquarters in Houston, and Entergy will move its Power Marketing Corp. to The Woodlands from New Orleans.
Other emerging growth industries are computers, including Compaq, and international trade. BMC Software will boost its area workforce by 700 jobs, or 70%, in the coming years. Houston continues to serve as a regional hub for international lending with loans by local agencies of foreign banks reaching $8.1 billion in 1996, up from $44 million in 1985.
San AntonioWhile San Antonio largely sidestepped the disastrous effects of the peso devaluation, its good fortune ran out with the Department of Defense in 1995. Federal defense realignments could displace between 10,000 and 18,000 workers at Kelly Air Force Base (AFB) by 2001 unless privatization hopes come true.
To avert further job losses, community leaders are developing strategies to offset the impact of Kelly's closing. Under the Air Force's privatization strategy, public and private concerns are allowed to bid for core Kelly functions. For example, local leaders hope to keep jet engine repair, which would be worth $660 million a year.
Inland Port San Antonio, a public-private partnership, is pitching the area's international trade potential by promoting the local transportation infrastructure, industrial space market, available financial incentives and strategic location. To this end, Kelly AFB facilities are important to marketing strategy.
Also, San Antonio continues to beckon tourists. With the Alamo and other high-profile attractions, the area has four of the state's top 10 tourism draws. Bexar County visitors spent more than $2 billion in 1995 for food, lodging, entertainment and transportation, according to the Texas Department of Commerce. Providing a further measure of economic stability are San Antonio's higher education complex and four remaining military installations.
The metro's employment base gained 12,900 jobs from June 1996 to June 1997 to reach an overall 646,700.
The construction, transportation and utilities, and finance sectors had the most growth from last year. Construction employment added 1,700 workers to reach 33,700 in mid-1997. Now several large-scale nonresidential construction projects are planned: the Westin Riverwalk Hotel, the Westin Resort next to Fiesta Texas, the Adam's Mark full-service hotel and a $187 million expansion of the convention center. About 6,900 single-family residential building permits were issued in 1996, representing an all-time annual high.
Trade and services remain vital economic components. Trade sector employment makes up 25% of San Antonio's employment base. It grew last year by 2,800 jobs to stand at 160,800 jobs in mid-1997. The service sector, representing 30% of the job base, added 5,600 jobs in a year to total 194,300 at mid-1997, with the biggest gains coming in business, health and social services.
Brownsville-Harlingen-San Benito
Known as a gateway to trade, Cameron County's proximity to the Mexican border and its large workforce attract many businesses. While retail trade and manufacturing employment fell after the peso devaluation, job growth in other sectors compensated for the hit.
Metro employment has increased moderately. Employment from mid-1996 to mid-1997 grew by 2,200 jobs to reach a total of 95,400. A commercial construction boom and an expanding service sector aided growth.
Construction employment has soared with an average annual increase of almost 9% since 1994. Projects include a $100 million tire manufacturing plant and eight state road construction projects totaling $12 million. The service sector grew by an annual 5% during the same period, thanks to new jobs in health services and social services. A 177-bed Valley Regional Medical Center Hospital is under construction.
Manufacturing employment has dropped 3.6% annually since 1994, but a turnaround is in sight. The Brownsville Economic Development Council reports that 14 new manufacturers and five manufacturing expansions will have ushered in 3,200 new jobs by late 1997.
Expansions include AMFELS Inc., a worldwide exporter of ship-building parts, and Titan Wheel International.
Trade employment and retail sales were hurt by the peso devaluation and the subsequent Mexican recession. Now retail trade activity is up, signaling that cross-border trade is increasing. Gross retail sales reached $2 billion in 1996, a $100 million increase from 1995.
LaredoWebb County's gain of 3,000 jobs last year was the fastest job growth of any metro in Texas. Total employment stands at 59,100. Also, since the early 1990s the area has experienced the most rapid climb in population of any metro.
Major construction projects in the last year totaled $258 million, including a $34 million airport terminal and runway update, the Nuevo Laredo sewage treatment plant and Mercy Regional Medical Center. Also the Laredo Community College's Import-Export Center was enlarged, and Texas A&M International University began a $60 million expansion.
With Laredo serving as the largest inland port in the U.S., transportation is a major component of the local workforce. This sector, which focuses largely on trucking, warehousing and distribution facilities supporting trade between the U.S. and Mexico, added 1,000 workers in the last year to reach 9,500. The 1996 opening of the Laredo Northwest International Bridge has eased the flow of 15 million vehicle border crossings per year. The bridge is part of a pilot project to improve customs processing of international cargo.
Increased oil extraction activity in South Texas due to new drilling and locating technology has revived a dormant mining sector. New jobs include surveyors, technicians and oil field laborers.
McAllen-Edinburg-MissionIn 1995, the McAllen-Edinburg-Mission metro was the third fastest-growing metropolitan area in the U.S., census data show. Total non-farm employment reached 131,600 in mid-1997, an increase of 4,400 from the prior year. While cross-border retail spending slowed after the peso devaluation, recent increases in wholesale and retail trade employment and in retail sales spell a turnaround. From June 1996 to June 1997, retail trade employment grew by 330 jobs.
Construction employment increased 30% from mid-1994 to hit a record-high of 6,700 in mid-1997. Current construction projects total $498 million, including a new hospital in Edinburg, a tower for Texas State Bank in McAllen and renovations at Sears, Roebuck & Co., Unimark Foods and Ultimate Investments. Foley's opened a store with 320 workers at McAllen's La Plaza Mall.
Eleven bridge and road construction projects and renovations were scheduled for 1997, including installation of an intelligent transportation system and widening of U.S. Highway 83.
Border-related jobs such as federal customs and immigration officers and international trade traffic personnel have contributed to government sector growth. School districts are among the area's largest employers, and higher enrollments are forecast. Enrollment for the University of Texas-Pan American and South Texas Community College increased from a combined 16,000 in 1994 to 18,000 in 1996.
About 23% of metro employment is in the service sector. Among major health service providers are the Rio Grande Regional Hospital in McAllen and the McAllen Medical Center.
Bryan-College Station
The Bryan-College Station area is largely influenced by the presence of Texas A&M University and agencies associated with the university system. Government is the leading employer, accounting for 40% of the area¹s 66,600 employment. About 2,000 jobs were added in the last year.
With enrollment close to 42,000, the university is enlarging its athletic facilities to include a new basketball arena, new tennis courts, an expanded main library and a renovated Kyle Field. In addition, the George Bush Presidential Library Center will open in November.
Construction is the fastest growing sector, up 29% since mid-1993 to 2,900 jobs. Residential construction, while fluctuating slightly, continues at its highest level in 14 years. Between 1992 and 1995, the annual number of single-family building permits averaged 553. In 1996, about 600 permits were issued.
New businesses such as the Sanderson Farms poultry processing plant and Universal Computer Services will bolster manufacturing employment. These businesses expect to create 1,400 and 800 jobs, respectively, in the next two years. Universal Computer Services is moving into a new 200,000-square-foot facility. Retail sales continue an upward trend. Sales of $1.3 billion in 1996 were almost double the level of a decade ago.
Killeen-TempleThe Killeen-Temple economy is driven in large part by Fort Hood, home to the largest military installation in the free world. The installation's employment is about 51,000, including 3,500 civilians.
Employment for Bell and Coryell counties totals 95,300 jobs, with the trade, service and government sectors accounting for eight out of 10 jobs. The metro has gained jobs each year in the last decade--700 just in the last year.
Government has long been the economic mainstay for the metro because of Fort Hood. The metro also has government workers in state prisons, public schools, agricultural research centers, the U.S. Department of Agriculture, Office of the Inspector General and the Soil Conservation Service, all of which represent more than 26,600 jobs, up 100 from last year.
The service sector, especially health services, supplies 25,500 of the area's jobs. Scott & White Hospital and Clinic, Kings Daughter's Hospital and Clinic and the Olin E. Teague Veteran's Center are the major health care providers.
In manufacturing, Wilsonart International, a plastics maker, is one of the metro's leading employers, as is McLane Foods, an international food distributor, both located in Temple.
Wholesale and retail trade accounted for more than 22,600 jobs this year. Area retail sales topped $3 billion in 1996; in fact, the metro led the state in retail sales growth from 1994 to 1996. Higher sales stemmed from new businesses catering to Fort Hood workers and a growing population.
Residential construction has been in flux in recent years. The number of annual permits issued peaked in 1993 at 1,765, while permits were down to 1,489 in 1996.
WacoSince 1993, McLennan County has seen an 11% jump in total job growth, mostly in the service and construction sectors. The primary growth spurts occurred in 1993 and 1994 when more than 3,500 jobs were created and again over the last year when 1,600 jobs were added. The metro has a total of 94,500 non-farm jobs, about two-thirds of which are in the service, trade and manufacturing sectors.
Over the last year, the service sector stood out in job growth with a 5% jump and 1,400 new jobs, thanks to new businesses such as two Marriott hotels, totaling 300 rooms, and a 150-room Hampton Inn.
Construction jobs grew by more than 21% over the last five years. By the end of 1996, about 360 residential building permits had been issued at an average value of $101,400 per unit.
Annual retail sales have risen steadily in the last decade: from $1.3 billion to $2 billion-plus.
The economic outlook remains positive. With Baylor University--the area's largest private employer--now a member of the Big 12 athletic conference, a task force is looking into ways to bolster tourism.
Beaumont-Port ArthurThe overall job base in the Beaumont-Port Arthur metro gained 1,800 jobs last year to total 152,350 in mid-1997. A growing construction sector led the way.
Major construction projects included national chain stores such as Lowe's and Super Wal-Mart, as well as 10- and 15-screen theaters, a high school expansion, new churches and a new 150,000-square-foot shopping mall, all built in 1996. Hospital expansions also contributed to growth. Construction will remain active thanks to the planned Dishman Elementary School and a private high school, Cathedral in the Pines.
New housing starts were recorded at 640 in 1996, which was half of the all-time high in 1993. But 1996 home values, an average $95,000, were the highest ever.
Federal, state and local correctional institutions fueled government employment. The state has capacity for 6,000 inmates between the Mark Stiles Unit, the Richard LaBlanc substance abuse facility and the Larry Gist State Jail.
Retail sales had a 7.6% increase in 1994 and another 6.5% jump in 1995, then slowed to a 2% gain. Sales totaled $3.2 billion in 1996.
BrazoriaBrazoria County's employment continued to climb, posting a gain of 700 jobs last year to reach a total 72,200 in mid-1997.
About one-fourth of employment is in the manufacturing sector with Dow Chemical Co. being one of the largest employers. In mid-1997, Dow announced the early retirement or layoff of more than 500 workers, though job creations by Intermedics, a medical device manufacturer, may offset the reduction. Other industrial giants in the area include Phillips 66, BASF Corp., Monsanto and Gulf Chemical.
Major government employers include the Texas Department of Criminal Justice with three Ramsey units, the Darrington Unit, the Retrieve Unit and the Clemens Unit, housing more than 8,000 inmates in all.
Gross retail sales reached $1.5 billion in 1995, a 3.5% increase from 1994. The upward trend continued as sales during 1996 posted a 6.9% gain and topped $1.6 billion.
While construction jobs dropped in 1996, there were ample gains in the sectors of transportation and utilities, and services.
Corpus ChristiThe Corpus Christi metro enjoyed an increase of 4,900 jobs in the last year to reach 155,000 in mid-1997. Almost one-third of the new jobs were created in the service sector, helped by the relocation of telemarketing customer service businesses such as APAC Teleservices, Inc., SITEL Corp. and First Data Corp. to the area.
Health services accounted for employment gains in local hospitals and medical offices. The trend should continue with two hospitals under construction and others expanding. The construction sector grew by 1,200 jobs in one year. Corpus Christi issued $124 million in new nonresidential construction permits during the first five months of 1997, 22% more than the same period in 1996. New home starts turned around in 1996, with a 37% increase in building activity compared to a 16% drop in 1995.
The trade sector, accounting for 23% of employment, gained 700 new jobs in the last year. Tourism remained active with the Texas State Aquarium attracting 400,000 visitors, and the Columbus Fleet dry-dock exhibit welcoming 120,000.
The military has a large presence with Naval Air Station at Corpus Christi and the Naval Station at Ingleside.
One facility, Corpus Christi Army Depot at NAS Corpus Christi, faces potential downsizing. The Depot, which is the largest helicopter repair and overhaul facility in the world with more than 3,000 workers, could lose 800 jobs in the next two years, the Army announced in early 1997. About 270 workers have taken early retirement, and layoffs are on hold pending a federal study to determine the depot's workload. Also, a potential Army policy change allowing for more public-private jobs and more work on Navy projects could minimize the expected downsizing.
Galveston-Texas CityGalveston County picked up 1,700 jobs last year to build employment to 88,400 in mid-1997.
The government sector, representing almost one-third of employment, posted a 1,100 job gain. The University of Texas Medical Branch (UTMB), a major employer, provided treatment to patients from 226 Texas counties in 1996. The newly opened Rebecca Sealy Hospital, Extended Hours Clinic and Primary Care Pavilion, as well as the new School of Nursing doctoral program, added to the UTMB employment roster.
The service sector, which includes numerous hotels and motels, gained almost 300 jobs in the last year, assisted by investments such as $4 million in improvements to the San Luis Hotel and Conference Center and $2 million in enhancements to the Inn at San Luis.
Galveston's 12-day Mardi Gras celebration, drawing 600,000 visitors, continues to be a major tourist draw.
Manufacturing has maintained its job level after declines from 1993 to 1995. Major manufacturers centered in Texas City include Amoco Oil, Union Carbide Chemicals and Marathon Oil.
About 1,300 building permits for single-family homes were issued in 1996 at an average value of $106,700.
VictoriaEmployment in Victoria County increased by 730 jobs during the last year, reaching a total of 33,900. Expansions in manufacturing facilities accounted for 200 new jobs with retail and wholesale trade adding another 100. Increased employment in retail anchors such as Super Wal-Mart, Super Kmart, Lowe's and Target, as well as the expansion of the local Whispering Creek shopping mall, are credited with the gains in trade.
Major manufacturing employers include DuPont, Rhino-X Industries Inc., a plastics manufacturer, and Texas Concrete Co.
The service sector, which employs about one-fourth of local workers, is dominated by health-related jobs in hospitals, offices and clinics of medical doctors and skilled nursing care facilities. Growth in this sector is expected to continue with plans for the 22-bed, $3 million Warm Springs Rehabilitation Clinic planning to open within the next few years. Outside of health care, Harvard Telecommunications, a teleservice center, expects to add 600 to 1,000 jobs in the next two years.
The construction sector posted a gain during the last year of about 200 jobs. New housing starts have remained constant during the last several years after severe declines in 1987 and 1988.
Longview-Marshall
The Longview-Marshall metro is looking globally for economic development. Gregg County Airport has applied for foreign trade zone status and awaits a decision next year. Longview has formed an alliance with Chilliwack, British Columbia, and as a result, Nutrina Laboratories, a Canadian pharmaceutical company, opened a distribution center in Longview.
In the last year, metro employment rose by 1,500 jobs, reaching 86,000 in mid-1997. About 600 jobs were created in the service sector; manufacturing was up by 315 jobs, and trade gained 100.
Residential housing activity has been strong, swelling from 128 new permits issued in 1990 to almost 300 in 1996 with an average value last year of $102,000--about $31,000 more than in 1990.
Retail sales in 1996 were $2.3 billion, an increase of $180 million from the prior year.
Sherman-DenisonGrayson County's economy is heavily dependent on manufacturing and health care. Texas Instruments, the area's largest employer, teamed with MEMC Southwest to bring a silicon manufacturing plant to the area. The plant opened in mid-1997 with 750 workers. Other major employers are Wilson N. Jones Memorial Hospital and Texoma Medical Center.
Overall employment stands at about 42,200, up 300 from last year. From mid-1996 to mid-1997, the metro added 900 jobs in the sectors of service, construction, government, and finance, insurance and real estate. At the same time, job losses totaling 600 were spread across the manufacturing, trade, and transportation and public utilities industries.
Residential housing activity increased from 487 properties in 1991 sold for $25.6 million to a 1996 level of 663 properties sold for $45.6 million, according to the Multiple Listing Service.
Retail sales activity reached $1.1 billion in 1996, up $79 million from the previous year.
TexarkanaThe Texarkana metro, which straddles the Texas-Arkansas state line, is Texas' only trans-state metropolitan area. Almost half of the metro lies in neighboring Arkansas. The current downsizing of the Red River Army Depot's mission by the U.S. Department of Defense will continue to hurt the metro economy for some time. When realignment is completed in 1999, some 1,800 jobs will have been lost. In a counter move, the Red River Local Redevelopment Authority is developing a comprehensive re-use plan for the depot to be implemented by 2001.
In 1997, the metro reached a total job base of 50,100. The manufacturing, service and government sectors each added more than 300 jobs over the last three years. This helped make up for losses in the construction sector and in the transportation, communications and public utilities sector during the same period.
Texas A&M University-Texarkana, with 1,150 students, plans a 40,000-square-foot expansion to the A.M. and Welma Aikin Center to add classrooms, labs, a testing center, faculty offices and other student facilities.
Residential housing activity has increased from a 1990 low of 435 properties sold for $23.7 million to a 1996 level of 631 properties sold for $46.9 million, according to the Multiple Listing Service.
TylerTyler is a regional education and medical center with a state university and state health services center, a community college and several hospitals anchoring the economy. The economy is doing well, with building permits, sales tax receipts, construction and employment all ahead of 1996 levels, according to the Tyler Economic Development Corp. A 1.6 million-square-foot distribution center for Target will provide 900 full-time and 300 part-time jobs upon completion in 1998.
Smith County's employment is concentrated in the service and retail trade sectors, with government and manufacturing employing large numbers of workers as well.
Over the last year, employment increased by 2,400 jobs to stand at 75,650, as of June 1997. The government sector had the largest increase, rising by almost 400 jobs.
Wholesale and retail trade added 300 jobs. The finance, insurance and real estate sector, along with transportation and public utilities, each posted gains of more than 100 workers.
Abilene
The Abilene area, once dependent on oil, gas and agriculture, has diversified since the early 1980s so that now six out of 10 jobs are in trade and services. With an annual payroll of $151 million, Dyess Air Force Base continues to be pivotal to the economy, employing 4,700 military personnel and 530 civilians.
From June 1996 to June 1997, Taylor County added 900 jobs, bringing employment to 54,800. Health services is growing. From 1994 through 1996, about 500 health-related jobs were added. The Hendrick Medical Center and the Abilene Regional Medical Center furnish more than half of the jobs in that field.
Construction employment added 100 jobs last year, even though single-family construction was down. Single-family building permits slipped from 311 in 1994 to 244 in 1996, but the average value of permits rose from $98,000 to $116,300.
Retail sales have seen unabated increases throughout the decade. Total sales for 1996 reached $1.4 billion, a 5% increase over 1995's level.
AmarilloAmarillo serves as a trade and agribusiness center for the Panhandle. In recent years, Amarillo also has become a regional health care center, providing an array of health services to Panhandle residents.
Metro employment has grown each of the last five years. Between mid-1996 and mid-1997, employment increased by 2,300 jobs, bringing the current job base to 94,400. Primary growth occurred in the construction industry, followed by services and trade. Thanks to steady construction of single-family houses, jobs in that sector are up almost 5% since 1993.
Since the Amarillo Economic Development Corp. began recruiting in 1991, 17 targeted companies have set up shop locally. Now an estimated 1,500 employees are due to be hired by Advanced Display Systems, a liquid crystal display manufacturer; Sitel Corp., a telemarketing group; and Nationwide Insurance Co.
With 400,000 acres of irrigated and dryland farms in Potter and Randall counties, agriculture plays a major economic role. The counties' combined agricultural cash receipts totaled $63 million in 1996; of that, beef production accounted for three-fourths.
Other indicators reflect a growing economy. Increased consumer confidence is further reflected in steadily rising retail sales, approaching $2.5 billion in 1996.
LubbockEmployment in Lubbock County expanded by 2,400 jobs from mid-1996 to mid-1997 to stand at 111,800. With the area's top employers coming from the education and health care fields, Lubbock is known as a major college town and the largest health care provider between Fort Worth and Phoenix.
The service and government sectors account for half of all jobs and together added 1,700 workers from mid-1996 to mid-1997. The service sector includes St. Mary of the Plains Hospital, Methodist Hospital and University Medical Center. In government, Texas Tech University is a major employer, as are the Lubbock and Friendship school districts.
The wholesale and retail trade sector--29% of total employment--includes Wal-Mart and United Supermarkets Inc. Lowe's Home Improvement Warehouse and Home Depot have opened facilities and contributed nearly 300,000 square feet of additional retail space. The area's transportation and utilities sector will likely grow as West Teleservices hires an expected 500 people and AT&T's new Solutions Customer Care Center creates almost 1,000 jobs, both by 1998.
Odessa-MidlandFrom mid-1996 to mid-1997, employment advances in the Odessa-Midland mining, manufacturing, construction and service sectors were almost offset by declines in the trade and government sectors. Still, metro employment managed to pick up 800 new jobs and reach a total of 97,900.
Employment gains were due mostly to a rebounding energy market and expanding business operations. As the price of oil approached $20 per barrel, some oil companies have begun exploring for additional reserves with 3D seismic technology.
The mining and manufacturing sectors added a combined 600 jobs from June 1996 to June 1997. Construction employment grew by 200 jobs, and services added 900 jobs.
To increase access to the metro, a $34.5 million expansion of Midland International Airport began this year. The project includes a new 155,000-square-foot passenger terminal.
San Angelo Employment in Tom Green County grew by 1,200 jobs from mid-1996 to mid-1997, bringing overall employment to 42,800. Most of the growth occurred in the service and government sectors.Health care services comprise the majority of service employment. Employers include Shannon Medical Center, Angelo Community Hospital and Outreach Home Health of the Midwest.
Manufacturing employment picked up 300 jobs from mid-1996 to mid-1997. One of the largest manufacturing employers is Ethicon, which fabricates surgical and medical supplies and appliances.
The meat processing industry expanded, as Lone Star Beef Processors and San Angelo Packing Co. added a combined 100 jobs.
Construction activity gained 100 jobs from mid-1996 to mid-1997. An estimated 160 multi-family building permits were issued between June 1996 and June 1997--a 100% increase from the previous 12-month period. More than 200 single-family building permits were issued from June 1996 to June 1997, with an average value of $90,500.
Wichita FallsThe Wichita Falls metro saw its trade and service sectors, which make up more than half of employment, advance by 200 and 400 jobs, respectively, during the last year, while the remaining sectors either remained flat or lost jobs.
Overall employment stood at 58,600 in mid-1997, a moderate increase of 300 from the prior year. The manufacturing sector, however, should get a boost as Fleetwood Enterprises finalizes plans to expand its manufactured housing production capacity, adding 200 jobs.
Other plans call for Blue Cross & Blue Shield to begin construction of a new claims center and eventually employ 350 people. The Texas Department of Criminal Justice has plans for a $24 million expansion of the James B. Allred Unit. Work on the maximum security unit begins late this year and will result in 200 new jobs.
Sheppard Air Force Base, the Wichita Falls school district and the Wichita Falls State Hospital are all major employers.
The annual number of single-family building permits peaked at 347 in 1993. About 200 permits were issued last year at an average value of $102,000.
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Carole Keeton Strayhorn
Texas Comptroller of Public Accounts |
Window on State Government
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