·        Aerospace

Houston's Johnson Space Center is a 1,620-acre complex located 25 miles from downtown Houston. Nearly 20,000 Houstonians work in and around JSC.  JSC is responsible for the Space Shuttle program, oversees much of the development and design work on the international space station, selects and trains astronauts, controls manned space flights from launch to landing, and manages many of the medical, scientific and engineering experiments conducted during shuttle flights.

·        Chemicals

The Houston area is the US base petrochemical center with 48 percent of US capacity for ethylene and 47 percent for propylene.  Base petrochemical capacity in greater Houston is three times larger than the nearest competing U.S. site.

·        Computers and electronic.

Houston is home to COMPAQ Computer[6], one of the largest computer manufacturers in the world. COMPAQ’s presence in Houston continues to attract companies like OCHS Industries, KAO Infosystems, Phelps Tool & Die, and Rugged Computers to either supply the computer giant or to serve their own manufacturing needs from the infrastructure that has grown up around COMPAQ.

·        Energy

Fifty-three percent of the region's economic base—those sectors of the local economy that export goods and services outside the region—is related to energy. Over 5,000 energy-related firms are located within the Houston region, including more than 200 significant exploration and production firms, more than 50 major pipeline operators, and hundreds of manufacturers of energy sector products. Worldwide recognition of Houston's pre-eminent position in the petroleum industry continually brings foreign companies to Houston. The city has an enormous infrastructure, encouraging foreign firms to develop equipment, expertise and business

·        Manufacturing

Houston is a leading manufacturer of chemicals, petroleum products, industrial machinery (including computers), food products, and fabricated metal products. Houston's concentration of capital-intensive and technologically advanced manufacturing has required the development of a strong, high-tech manufacturing support infrastructure. The support infrastructure includes engineering/design, electronics, measuring and controlling products, machining and tooling, data processing, and telecommunications.

·        Software

The U.S. Census Bureau’s 1997 Economic Census found that the Houston metro area has more than 235 establishments involved in software publishing, or 27.1 percent of the state total. That does not count the large number of firms writing proprietary software for in-house uses or developing software that is packaged with another pieces of proprietary equipment or hardware. According to estimates developed by the Texas Workforce Commission, there are approximately 31,600 computer systems analysts, engineers, programmers and computer scientists in the 13-county Houston Gulf Coast region.

·        Health Care

The Texas Medical Center’s (TMC) institutions included seven general and six specialized hospitals with 6,327 licensed beds and occupy more than 100 permanent buildings on campuses with 675 acres. This medical complex, comprised of approximately 42 member institutions, employs approximately 51,000 persons. Approximately 4.5 million patients visit the TMC every year. The center is on the forefront of research and treatment of cancer and heart disease.

Austin is the capital of the State of Texas.  The entire region is undergoing a nationally recognized growth spurt.  There are various incentives that are encouraging companies to relocate to Central Texas.

A well-educated work force, the presence of a world-class research university, a favorable business climate and an Outstanding quality of life make Austin and central Texas a great location for business.  These factors are supplemented by a reasonable tax structure, high-quality personnel, high degree of high technology companies, and a lower cost of doing business: Austin's overall business costs are 6.1% below the national average.

Overall, Austin's business costs are comparable to other, similarly sized metropolitan areas that have a strong high-tech presence, such as Salt Lake City, Utah and Portland, Oregon.  However, Austin's greater reliance on high-tech research, versus high-tech manufacturing, and the strength of having The University of Texas, make comparisons to the larger, more costly high-tech centers more appropriate.  Although San Francisco and Silicon Valley’s research capabilities are strengthened by the presence of Stanford University, the cost of living and the manufactory costs for high tech products are extremely high when compared to Austin’s costs.

The Austin region economy has exhibited solid employment growth during the last decade --a 72% growth from 1990 through 2000 with over 280,000 new jobs added. In 2000, total employment grew by 5.8% from the previous year, adding 36,600 jobs to the market (see Chart II). Over the decade, Austin has experienced an average annual job growth of 5.5 percent.

The Austin-San Marcos MSA ranked number one out of the largest MSAs in the State of Texas for job growth during 2000.  Approximately 13% of all new jobs in the State of Texas were created in the Austin-San Marcos MSA . This exhibits considerable strength for the Austin area, since its population has represented only 5.7% of the state's population.

The Austin/San Marcos region alone generated over $4.9 billion in export sales that year, a 186.5 percent increase from just six years before. In fact, wholesale trade was the fastest growing industry in Austin last year, averaging an annual increase of 20.4 percent.  It is evident, after singling out our NAFTA trading partners, that international trade conducted in Texas has been quite successful.

Austin is world renowned because of Dell.  But computer parts and peripherals is not the only industry in the state.  The presence of the University of Texas makes Austin the preferred location for industries such as bioscience and software, among others.

·        The Airport system

The brand new airport — Austin — Bergstrom International Airport - opened in May 1999 in southeast Austin, replacing Robert Mueller Municipal Airport with a state-of-the-art transportation gem. Increased parking facilities, more gates, flights and the promise of a light-rail link to downtown are all causes to celebrate this recent addition to the region.

·        Highways and Railroads

Amtrak services run through Austin, linking the capital with points north and south, and Austin is extremely well connected to nay other US city through the national highway system.

The quality of labor in Austin is so high because of the strong academic environment and the growing high-tech dominance in the economy, which has been a primary catalyst for Austin's phenomenal economic growth.  According to this year’s Austin Newcomer Study conducted by The Benchmark Company, at least 88 percent of the Austin workforce has some college education.  In addition, Austin was ranked fifth in the U.S. last year for its share of college graduates.

·        Bioscience

Already home to numerous bioscience companies, including Abbott Laboratories, Stratagene, Introgen, Sulzer CarboMedics and Sulzer Orthopedics, Austin has developed an extensive infrastructure. Austin is home to approximately 85 bioscience companies, encompassing products and services pertaining to pharmaceuticals, preventive medicines, medical devices, laboratory tools and analysis, gene based cancer therapies, and the list goes on and on! While Austin continues to attract companies from around the country and the world, local start-up ventures are rapidly developing in this current bioscience bonanza.  In 2000, Austin entities from all categories of business were awarded 1,913 patents, making Austin a top area for this important innovation measure among other high-tech regions.

The city of Austin and its surrounding areas house to various bioscience resources such as The University of Texas Institute for Cellular and Molecular Biology, the University of Texas/MD Anderson- Department of Veterinary Sciences, the number two nationally ranked University of Texas College of Pharmacy, and Austin Community College, one of six community colleges in the country to receive a National Science Foundation grant to create an Advanced Education Center and develop a biotechnology curriculum.  PricewaterhouseCoopers recently listed the University of Texas as one of the top 15 U.S. patent holders and top 15 global patent holders for all gene and DNA sequences, including those of human, animal, and plant origin. That spells success for the next generation of biotech companies, expected to evolve from results of the highly publicized Human Genome Project.

         Computers & Peripherals

Austin is a true leader in the computer and peripherals industry. Few regions can match its high concentration of employment in this industry — more than 10 times the national average.  And unlike older high-tech regions, such as Boston, growth in the cluster remains strong, as demonstrated by its 6 percent annual growth between 1990 and 1996.  The computer and peripherals cluster is relatively diversified.  The region’s producer firms in this cluster offer a wide range of computers and peripherals, including printers, monitors and storage devices. An extensive network of suppliers supports these export firms by providing specialized inputs. Synergy with the semiconductor cluster is an important feature of the region’s economic interconnectivity. Critical computer components, such as chips and circuit boards that go into computers, are often produced locally. Moreover, highly skilled workers, such as technicians and engineers, are shared across clusters and between industry segments. Other industry links include instrument manufacturing, tool and die machinery, telecommunications equipment and plastics fabrication. Another critical economic synergy is the shared labor among related segments and clusters.

·        Film

According to a recent article by Chris Garcia in the Austin American Statesman, "Anyone who has ventured downtown in the past month couldn't fail to notice. It's evident in the blocked streets, commandeered parking spaces, obstructed sidewalks and business entries: The health of film production in Austin is alive and well in rambunctious fashion."  Indeed, Mr. Garcia's assessment seems right on point.  According to Gary Bond of the Austin Film Office, the total production budgets of films made in and around Austin this year will total $100 million, up from $77 million last year. Bond estimates that half of that money is new money coming to Austin, money that stays in the city.  Called the third coast by people in the industry, the Austin area is home to such film industry luminaries as actress Sandra Bullock, actor Matthew McConaughey, producer Lynda Obst, animator/filmmaker Mike Judge, as well as independent filmmakers Richard Linklater and Robert Rodriguez, among others.

Artists support services include advice and referral, workshops, a bi-monthly newsletter focusing on independent filmmaking and community resources, fiscal sponsorship of projects and the Texas Filmmakers' Production Fund (which distributes grants directly to independent filmmakers in the manner of the now defunct National Endowment for the Arts regional regrants). Last year, the Filmmakers' Fund raised and awarded $50,000 to 32 emerging film and video artists of Texas.

·        Logistics & Distribution

Logistics (transportation planning and management) and distribution (handling and dispersal of goods) is one of the fastest growing industries in the United States.  As trade increases, both domestically and internationally, so does the strategic importance of this integral sector.  In Austin, the key producer firms of the logistics and distribution industry are regional service providers – wholesalers and distributors, air courier services, and airline ticketing.  Service companies such as vehicle supplies and repair, warehouse and storage facilities, and freight and airport services in turn support these firms.  The increased demand for air cargo and air cargo carriers is visible in the numbers.  The FAA is projecting an average 6.6 percent global air cargo growth rate over the next 20 years.1 Austin air cargo traffic is up 9 percent and year-to-date cargo activity is up 15 percent (May 2000-2001). Austin logistics & distribution providers are preparing for strong, continued growth, contributing their time and talent to join forces with Austin-Bergstrom International Airport on its 20-year Master Plan for cargo expansion and development. Ranked the sixth fastest-growing major airport in the nation, the L&D industry is actively working to keep Austin on top.

·        Multimedia

The Greater Austin Chamber of Commerce defines multimedia as "the integration of audio, video, text and graphics within an electronic interface that ultimately provides information, communication and/or entertainment."  By that definition, approximately 430 multimedia-related companies operate in the Austin region. Multimedia developers, hardware providers and suppliers employ more than 50,000 people in the region.  An estimated 80 percent of the industry's firms were founded since 1985 and a whopping 60 percent of firms in the industry were founded after 1990.  The region's key multimedia exporters are CD-ROM developers, video game software developers, Internet software firms and media/communications companies with interactive divisions.

·        Music

The Austin region has gained a national reputation as a hotbed of creativity, especially in the emerging music industry.  This reputation is reflected in the structure of the industry, whose primary “exporters” include independently produced records (local labels and producers) and clubs and other music venues. It is estimated that there are more than 100 venues pulsating to live music every night of the week in Austin, leading to the city's title as the “Live Music Capital of the World.”  While Austin is home to five independent record labels with national distribution, no major studios or record companies are located in the region.  One of the most remarkable aspects of Austin's music industry is the speed with which this industry has developed.  The 1998 ICF Kaiser report states that the annual employment growth of music venues grew 18.5 percent between 1990-1996 and the number of entertainers and music groups increased 40.8 percent in the same period.

·        Software

While Austin’s software cluster has not quite reached the concentration levels of the region’s two other mature clusters, its growth has been phenomenal.  From 1975 to 1990, the cluster grew at an average annual rate of 21 percent, accelerating during the 1990 to 1996 period to 22 percent growth per year — far exceeding the pace of growth in other clusters in the region.  The software cluster is relatively well-developed and diversified, with a good mix of producer firms as well as suppliers.  The key supplier firms provide hardware, computer services and software sub-contractor support to firms meeting final consumer demand.  “Export-oriented” firms typically need to compete in both national and international markets, and therefore must provide highly sophisticated products requiring advanced design and programming capabilities backed by strong marketing and distribution networks.

Data suggests that Austin reached a critical mass of skilled workers only a few years ago.  As the world’s markets grew, Austin’s software developers were well positioned to take advantage of international demand for software.  The rapid emergence of the software cluster, among other recent trends, illustrates how the Austin economy is developing an internal capacity to grow.

Over 140,000 companies operate in the Dallas area. More than 6,000 of these have their corporate headquarters here. In 1999, Dallas ranked third highest in the nation for the number of Forbes 500 private company headquarters, with 11 in the city and 16 in the region. In addition, Texas ranks third in the nation for the number of Fortune 500 company headquarters, with 19 of those located in the Dallas/Fort Worth area. Nine Global 500 companies are also head-quartered in the area.  If Dallas/Fort Worth were a country, it would be the 24th largest country in the world— larger than Finland, Greece, South Africa or Israel—based on gross area product. If the area were a state, it would be the ninth most populous in the U.S. and the 14th largest state based on gross area product.

From its inception, the Dallas region has been a bustling center of commerce, and today thousands of companies call it home. An entrepreneurial spirit permeates the business culture, making it a hot, pro-business market. There is no personal income tax, no corporate income tax, no state property tax and no unitary tax. Texas is a right-to-work state, which keeps unionization at a minimum. What’s more, the region has the fifth-lowest cost of living of the major U.S. metropolitan areas.

Dallas is home to the world's largest wholesale merchandise mart: the Dallas Market Center (DMC). The DMC conducts 50 markets annually, attended by more than 130,000 retail buyers. Founded in 1957 by real estate developer Trammell Crow, the Dallas Market Center was the first permanent facility to unite regional wholesalers under one roof.  Today, the mart attracts specialty and department store buyers from all 50 states and 84 countries.  The DMC is comprised of six buildings containing 6.9 million square feet, making it the largest wholesale merchandise mart in the world.  The buildings contain 2,200 permanent showrooms and 460,000 square feet of temporary show space.

Dallas is home thousands of household names such as Blockbuster, and it has a strong and diverse business environment.  Major industries are technology and telephony, health care and real estate, to name a few.

Financial sector businesses offer short-term real estate financing, mortgage banking, credit card

services, brokerage services, insurance, banking and venture capital services. There are more

than 300 independent banks and large banking groups in Dallas. There are also over 700 offices

and branch locations of commercial banks, savings institutions and U.S. branches of foreign

banks, with nearly $40.6 billion in deposits. The top 20 financial services firms in the area

employ 16,588 people. Dallas is also home to one of the twelve regional reserve banks in the Federal Reserve System. The Federal Reserve Bank of Dallas plays a key role in maintaining the economic vitality and financial stability of the region.

International trade is becoming a pivotal part of the local economy. Foreign trade in the Dallas/Fort Worth area reached over $18 billion in 1998, increasing 51% from 1994 to 1998. There are 28 foreign consulates, 11 foreign trade offices and eight foreign banks serving the Dallas area. Arthur Andersen ranked Dallas as number one for international corporate relocation in a 1997 study. Dallas is also strategically positioned to benefit from the North American Free Trade Agreement.

·        The Airport system

The Dallas/Fort Worth International Airport, larger than the island of Manhattan, is the third-busiest airport in the world. In 1999, DFW Airport served over 60 million passengers with an estimated 2,300 daily flights to approximately 152 destinations, including 121 nonstop domestic flights and 31 non-stop foreign destinations. The airport's convenience is unmatched. In less than four hours, a traveler can fly directly to any city in the continental U.S. This also means business travelers can return home the same day. DFW International Airport is also the major hub and corporate headquarters for American Airlines. Improvement projects underway include a new international terminal, an eighth runway, extension of three existing runways and a “people-mover” system. DFW International Airport is truly a global gateway, offering approximately 60 nonstop international departures and serving destinations in Canada, Mexico, Central and South America, the Caribbean, Europe and Asia.

·        Highways and Railroads

The Dallas area is served by a well-developed system of roadways with five interstate highways and 19 other U.S. and state highways. In addition, Dallas/Fort Worth has the highest utilization rate of High Occupancy Vehicle (HOV) lanes of any major metropolitan area in the country. In fact, the average commute time in the Dallas area is 24 minutes.  Interstate Highway 35, which cuts through the heart of Dallas/Fort Worth, is also known as the “International Trade Corridor" because it is the primary commercial route resulting from the North American Free Trade Agreement. The North Texas Tollway Authority has also constructed a convenient, efficient toll road system comprised of the Dallas North Tollway, President George Bush Turnpike, Addison Airport Toll Tunnel and Mountain Creek Lake Bridge. The Dallas North Tollway is a direct connection between downtown Dallas and the suburbs to the north. The first phase of the President George Bush Tollway, a new major east-west thoroughfare, opened in December 1999. Dallas is a major hub for hundreds of rail routes with service provided by four major railroads.

Nearly 1.9 million people work in the Dallas area civilian labor force. Dallas has a young, productive labor market. The Dallas area, with a median population age of 32.6, has a young labor market compared to the national average of 35.4. Texas has 20 percent higher productivity than the U.S. average. Dallas is located in a “right-to-work” state with approximately 6.4 percent of the workers unionized. Only four other states have less unionization. Experts say the Dallas/Fort Worth area will lead the nation in employment growth from 1997-2005, creating nearly 500,000 new jobs. Job growth in the Dallas/Fort Worth area for 2000 alone is projected to reach approximately 56,000 new jobs. The Dallas area unemployment rate continues to be below the state of Texas and the nation at an average of 3.1 percent in 1999. There are an estimated 230,000 high-tech workers in the area workforce.

The population of the Dallas/Fort Worth metropolitan area is expanding rapidly and projected to exceed 5 million by the end of 2000. The labor market is mushrooming as well with over 60,000 new jobs predicted for 2000.

·        Technology and Telecommunications

Dallas, otherwise known as the Silicon Prairie, accounts for 47 percent of all tech-related revenue in Texas. Over 600 tech companies cluster in the vicinity of the telecom corridor, along highway 190 and US 75. Dallas also leads Texas in communications manufacturing employment, with nearly 20,000 people in the sector. In fact, the Dallas-Fort Worth area ranks third in the U.S. in information and communications jobs.

·        Trade and Distribution

The second largest employment sector in Dallas is wholesale and retail trade, accounting for a fourth of all jobs. Dallas International Airport, the nation's largest airport, with 400 million square feet of warehouse and distribution space, contributes heavily to this sector. The Dallas-Fort Worth area has 120 motor freight carriers, also a considerable source of employment.

·        Tourism

Dallas is the top visitor destination in Texas, hosting 14.2 million people each year. Tourism provides 122,000 jobs in the area, while conventions alone contribute $4 billion for the local economy. The Dallas Convention Center, true to the city's character, is the biggest in the state.

·        Health Care

There are 60 hospitals, 13,000 beds, and 5,800 physicians in the Dallas-Fort Worth metro area. Parkland Memorial Hospital and Baylor University Medical Center are nationally recognized hospitals, ranked among the nation's best by U.S. News and World Report. The University of Texas-Southwestern Medical Center employs four Nobel laureates and is the crown jewel of the UT medical system.

·        Real Estate

The dense concentration of corporate headquarters in Dallas supports a growing real estate industry. The city has 110 million square feet of office space, 252 million feet of industrial space, and was recently ranked 12th among 18 major real estate markets for buying and building commercial property.

The San Antonio Metropolitan Statistical Area is the fourth largest MSA in Texas, but the City of San Antonio holds Texas' second-largest city population within its borders.  San Antonio covers 417 square miles in south central Texas where the Texas Hill Country meets the Gulf Coastal Plain.  It has a modified subtropical climate because of its location on the edge of the Gulf Coastal Plains. The average temperature (based on 100-year figures) is 69.9 degrees. The humidity varies from an average of 80 percent in the early morning to an afternoon level of 50 percent.  The Alamo City averages about 28 inches of rain per year, with the heaviest amounts in May and September. Winter temperatures dip below freezing only about 20 days on the average.  Measurable snowfall normally occurs only once every three or four years, with the record being 13.2 inches on January 12, 1985.  Expect summer temperatures to be above 90 degrees over 80 percent of the time.

San Antonio is in the fastest growing region within the state at the crossroads to new opportunity and growth. The city offers proximity to the major Texas population centers and a location midway between the east and west coasts. International trade is growing rapidly with over two-thirds of the trade between the US and Mexico being moved through the area on the many interstate highways. Primary border crossing points between the two countries are at three locations all 150 miles from San Antonio at Laredo, Del Rio and Eagle Pass (all 2 1/2 hours away) and the ports at Corpus Christi (2 1/2 hours) and Houston (3 hours).

The dynamic and diverse economy is a healthy mix of: business services; a rapidly growing medical and health delivery sector; a diversified manufacturing sector which produces everything from aircraft and semiconductors to rolled aluminum sheet and cement; and, a well established convention and visitor industry.  Diversity is the strength of the economy and reflects the community-wide consensus for business development and quality job creation.

San Antonio is looking to develop a new international business incubator.  The city hopes to house 10 to 20 companies at the site.  Their goal is to imbed BancoMex, a Mexican bank that is supplying them with clients, at the site, and for $2,500, an international company, not necessarily a Mexican one, can position a person in the city. This will allow the company to get access to the U.S. market.

As of the 2nd quarter of 1998, San Antonio has ranked among the lowest in cost of living for metropolitan areas with one million population, and has ranked below the national average for 20 consecutive quarters. Comparing the 20 largest metro areas, which participated in the ACCRA survey, San Antonio's housing, grocery and utility costs remain among the lowest in the nation.

·        The Airport system

Air Transportation: San Antonio International Airport has direct service to all major hubs and is accessible by air to flights from around the country and beyond. The City of San Antonio Aviation Department operates San Antonio International Airport (SAT), a full-service airport with an international port of entry, and Stinson Airport, which is strictly a general aviation airport for small commercial and private aircraft. Eleven scheduled airlines serve San Antonio: Southwest, United, Mexicana, Delta, Atlantic Southeast, Northwest, AeroLitoral, American, Continental, TWA, and Aeromar. Air service from San Antonio into Mexico is frequent, with many non-stop daily flights to numerous points in Mexico.

·        Highways and Railroads

North/South and East/West interstate highways connect San Antonio with all major Texas cities and the entire United States and Mexico. Interstate 10, the southernmost across the United States, heads west through El Paso to California and east through Houston to Florida. To the southeast, Interstate 37 connects to the Port of Corpus Christi, and Interstate 35 links the Mexican border, 150 miles south of San Antonio, with the central United States and into Canada.

The recently merged Union Pacific-Southern Pacific (UP-SP) railroad provides rail service to San Antonio for the U.S. coasts and cities along the U.S.-Mexico border. The UP-SP has two intermodal facilities in San Antonio. Both are equipped for loading and unloading various types of rail freight containers.  The AmTrack trains, the Eagle and the Sunset Limited serve the San Antonio area.  Approximately 25 common-carrier truck lines are in operation in San Antonio.

The region has a large, skilled labor pool and reasonable labor costs.

San Antonio is the 8th largest city in the U.S., with a population of 1,171,700. Bexar County's population is 1,401,200. The population of the Metropolitan Statistical Area (which includes Bexar, Comal, Guadalupe and Wilson counties) is 1,570,500.  San Antonio's population is 35.9 percent Anglo, 55.6 percent Spanish-language surname, 7.0 percent black, and 1.5 percent "other."  The median age in this city is 29.8 years. San Antonio's population is slightly younger than both the Texas average (30.8) and the national average (32.6).  The per capital personal income as of 1993 for Bexar County was $17,916 and for the Metropolitan Statistical Area was $17,889.

·        Aerospace and Defense

San Antonio has been successful in locating aviation-related companies to the base. Boeing, for example, has selected San Antonio for its 167,225-sq.-m. aircraft maintenance operation.  Also, Lockheed Martin located a 120,774-sq.-m. engine maintenance operation at the base. Lockheed Martin will operate under a government contract to maintain engines on many of the military's aircraft. The company will employ 1,300 people. Safety Equipment Co., which distributes safety equipment and military uniforms, established a distribution facility.

·        Services

The new facility will provide ample space for the back-office and information services firms that continue to stream into San Antonio. Six [back-office] operations have relocated to San Antonio this year alone.  Alliance Fund Services, a wholly owned subsidiary of Alliance Capital, has also leased 90,000 sq. ft. (8,361 sq. m.) of office space in San Antonio for a new mutual fund service center. It will employ up to 500 people over the next five years.