Summer 2010 $ 4.
25 500 e un erS ort uart F n q eadHousto H es in Forb
Growing Global Connections:
Houston region represented at the Shanghai World Expo 2010
Results of the Houston Area Survey are in. Houston Rocks!
THE HEADQUARTERS ISSUE
Why business success today points to Houston
COVERING OUR 10-COUNTY REGION: AUSTIN, BRAZORIA, CHAMBERS, FORT BEND, GALVESTON, HARRIS, LIBERTY, MONTGOMERY, SAN JACINTO AND WALLER
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13 HOustOn cHrOniclE 100
Business awards program ranks Houston’s hottest companies
14 HOustOn rEgiOn: tHE HEAdQuArtErs fOr HEAdQuArtErs
Twenty-five Fortune 500 companies call Houston home
2 2 AnAtOMy Of lOcAting A cOrpOrAtE HEAdQuArtErs
The science of ideal corporate headquarters locations
3 6 lETTER
From the Greater Houston Partnership
26 HOustOn rEgiOn And tEXAs On sHOW At sHAngHAi WOrld EXpO 2010
A cultural exchange between China and the Houston region
Business growth around the region
Jack Fusco, Calpine
30 MApping HOustOn’s HEAdQuArtErs
The commercial real estate scene in the region
32 cHAngE is HErE, WitH MOrE tO cOME
Results from the 2010 Houston Area Survey
38 ART SCENE
Houston’s art happenings
39 MY HoUSToN
There’s no place like Houston
UPCOMING FOR FALL
pHOtOs: us OncOlOgy; (tOp) tEXAs MOntHly
In the next issue we will cover how the Houston region is uniquely qualiﬁed to excel in the distribution and logistics industry. Articles will include happenings at the port and the airport system, the region’s commitment to the industry, as well as coverage on the Breakbulk 2010 Conference and Expo.
Opportunity Houston is an aggressive ﬁve-year marketing program that generates leads for economic development organizations throughout Houston’s 10-county region. A direct result of the Greater Houston Partnership’s 10-year Strategic Plan, Opportunity Houston will help create 600,000 regional jobs, attract $60 billion in additional capital investment and increase foreign trade by $120 billion for the greater Houston area. Opportunity Houston targets ﬁve major economic sectors identiﬁed by The Perryman Group as critical to Houston’s future prosperity: • Aviation and aerospace • Energy and petrochemical • Life sciences and biotechnology • Information technology • Nanotechnology
SM SM SM
OppOrtunity HOustOn | 1
How do you fast-track success in a slow economy? Do business in Houston.
U.S. Bureau of Labor Statistics (as reported by the Houston Business Journal)– July 2010
Houston Lead s U.S. in Job (2005-2010) Growth Home to 25 Fo rtune 500 - 3rd Most in th Headquarters e U.S. Top Destinati Best City for Y on City
Fortune – April 2010
U-Haul International – April 2010
Forbes.com – June 2010 U.S. Army Corps of Engineers, Waterborne Commerce Statistics Center – 2009 Houston International Protocol Alliance – April 2010
Port of Houst on 1st in th in Foreign To e United States nnage 92 Consulates - 3rd Most in N ation
Seabury APGdat – February 2009
Houston Air 4th Largest in port System the United Sta
ACCRA Cost of Living Index –
Top Ten Majo r with Lowest C Metro Areas ost of Living
Our award-winning international economic development team is on standby to provide expedient access to the region’s vast business opportunities, titans of industry, innovation leaders, regional allies, capital investment opportunities, Certi ed Property Program, skilled and energetic work force, international trade connections, and leading-edge research and analysis data.
Greater Houston Partnership
Jeff Moseley President and CEO Greater Houston Partnership
contact us at: 1200 Smith, Suite 700 Houston, TX 77002 phone 713-844-3600 fax 713-844-0200 www.houston.org for more information,
id you know the Houston region has more Fortune 500 headquarters located here than Los Angeles? More Fortune 500 headquarters than Atlanta? More Fortune 500 headquarters than the entire state of North Carolina? In fact, Houston goes back-and-forth with Chicago for second place and is third only to New York in Fortune 500 headquarters. This is no accident. Our Houston region gives headquarters’ operations a tremendous strategic advantage! The facts speak for themselves. Twenty-five of the 2010 Fortune Global 500 list have chosen to establish their corporate headquarters right here. Our Houston region provides companies with what they need to manage their daily operations, to travel and ship conveniently, and a highly professional work force.
Calpine, the nation’s largest independent wholesale power producer, is a prime example of a multinational company choosing to headquarter in the Houston region. The company moved its corporate offices from San Jose, California to Houston last year. In this Opportunity Houston magazine, Calpine’s President and CEO, Jack Fusco, outlines his company’s behind-the-scenes reasons for selecting Houston as their home base. In order to show our readers more about the selection process for choosing a headquarters site, we talked to THE authority on corporate site selection, Robert Ady, President of Ady International. Bob, the dean of site selection professionals, has been in the business of working with companies looking to relocate their headquarters for more than 30 years. He makes it clear that corporations make relocation decisions on a subjective level, and that each one has to base its move on its own set of requirements. Depending upon a company’s needs, there are affordable options everywhere in the Houston area. Our feature on commercial real estate notes that top energy, banking, legal, and accounting businesses are headquartered in our thriving central downtown. A good point is also made for the 30 to 40 percent of undeveloped land where companies can select build-to-suit options or take advantage of proximity to the ship channel or area airports. As a
third possibility, we have newer communities that are taking hold with prime examples of suburban campus headquarters. And to assist companies with location data and realestate listings, the Greater Houston Partnership offers our Geographic Information System as a real-time, multi-layered mapping resource. In our article on the Shanghai World Expo, you’ll see that GHP has partnered with our state and the city to vigorously promote the region to the international business community. In addition to co-sponsoring the USA Pavilion at the expo, GHP also organized multi-city tours so that Houston businessmen could meet with leading Chinese corporate and government officials. Mayor Annise Parker conducted her first international mission to China. Her meetings with the mayors of Beijing, Shanghai, and Chongqing opened with a warm greeting and “Houston is the strongest regional economy in America.” If you are planning a headquarters relocation or expansion, the Houston region should be top of mind. But don’t take our word for it. Check out Houston’s highly acclaimed business climate at www.houston.org. And see what Forbes, Fortune, Business Week, MSNBC, Newsweek, and other trade publications are saying about the Houston advantage!
P.S. If you would like to know more about relocating a business to our region, Craig Richard, our Chief Economic Development Officer, is standing by to take your call! He can be reached at 713-844-3612 or email@example.com.
Here’S AN OPPOrtUNItY FOr YOU tO Be HeArD
send your comments or ideas for future issues to Opportunity Houston, P.o. Box 1569, Austin, TX 78767 or firstname.lastname@example.org.
OppOrtunity HOustOn | 3
eYe ON HOUSTON
ART IN THe SUN
4 | OppOrtunity HOustOn
pHOtO: grEAtEr HOustOn cVB
Points of View, by James Surls, was recently returned to Market Square Park after undergoing restoration treatments. James Surls has taught at the University of Houston’s School of Art and was the founding director of the university’s lawndale Art and Performance Center. The sculpture, originally created in 1992, is part of the City of Houston’s extensive public art collection. Guided by community input, Market Square Park has also experienced a recent redesign in order to better reflect the spirit of the community. for more information, visit www.houstonartsalliance.com.
GREATER HOUSTON PARTNERSHIP houston.org
prEsidEnt And cEO
Jef Moseley c Policy
EXEcutiVE VicE prEsidEnt And cOO
MAnAging EditOr And sEniOr VicE prEsidEnt, MArKEting And cOMMunicAtiOns
cHiEf EcOnOMic dEVElOpMEnt OfficEr
Craig J. Richard
You’re not the only one in Houston who wants your business to be o -the-charts successful! We Do Too!
So reach out to your local Economic Development office at the Greater Houston Partnership today to learn about business retention and expansion offerings throughout the Houston ten county region. You have resources, options, incentives and major supporters you might not even know about. Call Chad Carson at 713-844-3614 or email email@example.com.
cHiEf finAnciAl OfficEr
sEniOr VicE prEsidEnt, MEMBEr sErVicEs
sEniOr VicE prEsidEnt, puBlic pOlicy
sEniOr VicE prEsidEnt, intErnAtiOnAl BusinEss And WOrld trAdE cEntEr HOustOn
Cody M. Sutton
“Your success is our success.”
David B. Dunham
prOjEct MAnAgEr dEsign
Economic Development Team Greater Houston Partnership
Graphic Engine Design
Anjuli Blair, Nathaniel Janes, Deborah Mann lake, Katie McCarthy, Ken Schneider, Troy Schulze, Matt Smith, Dayna Steele
cOpy EditOr/prOOfrEAdEr rEsEArcH And fAct cHEcKing
Director, Mike McKee, 512-320-6934 Advertising Sales Manager, Rebecca Akins, 713-960-5099 Southwest Sales Director, Kristin Belt, 512-320-6924 © 2010. All rights reserved. Opportunity Houston is published four times a year. greater Houston partnership 1200 smith, suite 700, Houston, texas 77002-4400 printed in the u.s.A.
Our award-winning regional economic development team is on standby to provide expedient access to the region’s vast business opportunities, titans of industry, innovation leaders, regional allies, capital investment opportunities, Certi ed Property Program, skilled and energetic work force, international trade connections, and leading-edge research and analysis data.
OppOrtunity HOustOn | 5
Regional update News & Information
Business growth around the region
Brask inc., neela breaks ground in pearland
Members of the Pearland City Council, Pearland Economic Development Corporation (PEDC) board members, Mayor Tom Reid, City Manager Bill Eisen, city staff, honored family, friends, and guests of Brask Inc., Neela were present on Tuesday, June 22, 2010, for the groundbreaking ceremony of Brask Inc., Neela. Construction on 9.45 acres within Pearland’s industrial park symbolizes the commitment Brask Inc., Neela has made to the city to build a state-of-theart manufacturing complex that when complete will total an approximately $6 million capital investment in the community. Brask Inc., Neela will employ 27 people in its first full year of operation, with projected growth being upwards of 100 employees. This facility will predominantly fabricate custom-heattransfer equipment that services the petrochemical and chemical industries. The projected completion date is the third quarter of 2011. The plant will feature a weld, machine and assembly shop that will also include a clean room for high-alloy welding. This project is an expansion of Brask-IEE, which is located in Sulphur, Louisiana. www.ieeinc.net. Land, a project that will bring more than 350 jobs and $3 million in capital investment to the city. The company plans to occupy approximately 87,000 square feet in the newly renovated Lake Corporate Center, 14141 Southwest Freeway. Money Management International, incorporated in Texas in 1997, and its family of local agencies make up the largest nonprofit, full-service credit counseling agency in the United States. The company has provided confidential financial guidance, financial education, counseling and debt management assistance to consumers since 1958. With multiple offices in the Houston region, the company performed a regional search for a location to consolidate its operations. To attract MMI, the Sugar Land Economic Development Department crafted an incentive package featuring a direct incentive from the Sugar Land Development Corporation. The company selected Sugar Land as the location for its corporate headquarters as well as the consolidation of numerous operations. “We are pleased to welcome Money Management International and
Money Management international selects sugar Land for relocation
Money Management International (MMI) announced plans to locate its headquarters in Sugar
6 | OppOrtunity HOustOn
pHOtOs: (LEFt) istOck; (OppOsitE) strEAM rEALty
Lake Corporate Center, Sugar Land
its employees to Sugar Land,” said City of Sugar Land Mayor James A. Thompson. “The addition of MMI’s corporate headquarters to the city’s ever-expanding list of corporate residents further establishes Sugar Land as a premier employment center in the Houston region.” Sugar Land, located in the southwestern portion of the Houston–Baytown–Sugar Land MSA, is one of the fastest-growing cities in Texas and is consistently selected as one of the nation’s top communities to live and work. Sugar Land’s favorable business climate touts a highly educated work force, a major corporate airport with U.S. Customs services and more than 20 million square feet of commercial space in its business district. Recognized as a major regional employment center, Sugar Land continues to attract new corporate partners to expand its existing corporate presence, which includes Minute Maid, Tramontina USA, Noble Drilling, Fluor Corporation, Schlumberger, Bechtel Equipment Operations, Aetna and many other national and international corporations.
H-E-B purchases site for new store in the Woodlands
H-E-B has purchased a 14.6-acre site on FM 1488 and Kuykendahl Road in The Woodlands Village of Alden Bridge, according to Dan Leverett, Vice President, Commercial for The Woodlands Development Company. It will be the third H-E-B store in The Woodlands. “The Woodlands has been a very successful market for us, and we look forward to expanding our presence in the community,” said Richard Golden, Director of Real Estate–Houston division of H-E-B. H-E-B, with sales of more than $15 billion, operates more than 300 stores in Texas and Mexico. Known for its innovation and community service, H-E-B celebrated its 100th anniversary in 2005.
continental Airlines announces new daily service from Houston hub to Lagos, nigeria
Continental Airlines announced plans to launch new daily nonstop flights between Houston and Lagos, Nigeria, beginning November 10,
2011, subject to government approval. It will be the first daily scheduled service offered between Texas and Africa by any carrier. Lagos will be Continental’s first destination in Africa and the 30th city in its transatlantic route network. It is the second new international destination announced in the last month that will be served nonstop from Houston, Continental’s largest hub. Continental currently serves 63 international destinations nonstop from Houston and recently announced plans to begin nonstop service between Houston and Auckland as of November 16, 2011, subject to government approval. With the addition of flights to Africa, Houston will become one of just four cities in the world—and the only city in the Western Hemisphere—to provide nonstop service to every inhabited continent on the globe. “We are excited to continue to expand our international route network from Houston by adding nonstop service to Lagos,” said Jeff Smisek, Continental’s Chairman, President and Chief Executive Officer. “This flight
OppOrtunity HOustOn | 7
Regional update News & Information
will link two energy capitals and fill the growing demand for nonstop service between the two cities—a route which is currently not served by any other airline.” Continental will operate the approximately 6,500-mile flight with a Boeing 787 Dreamliner aircraft, seating 36 customers in business first and 192 customers in economy class. Flying times will be approximately 11 hours eastbound and 12 hours 30 minutes westbound. The new flight will reduce travel time between the two cities by more than four hours by eliminating any connection en route. The preliminary schedule for the new service is listed below. • First daily scheduled service offered between Texas and Africa • New Africa route to be flown with the Boeing 787 Dreamliner • Planned as Continental’s first new international service to operate with the new jet • Nonstop flight will reduce travel time between the two cities by more than four hours the first professional sports facility in Texas to receive a LEED Certification and joins Portland’s Rose Garden, Miami’s American Airlines Arena and Atlanta’s Philips Arena as the only NBA venues to receive any sort of certification. The Silver Certification ranks second only to the Gold Certification achieved by Portland earlier this year. The certification, awarded by the USGBC under its Leadership in Energy and Environmental Design program, identifies and rewards best practices by a building in areas that include energy, environment, water efficiency and natural resource performance. “In keeping with Leslie Alexander’s vision of environmental responsibility, we have dedicated many resources over the past few years to gain certification within the LEED-EB: O&M program with regards to sustainability and operational efficiency,” said Rockets and Clutch City Sports & Entertainment CEO Tad Brown. “This certification serves as validation that our aggressive approach to energy management, recycling and wastereduction programs has made a difference here at Toyota Center and in our community. Toyota Center has a unique opportunity to serve as an industry leader in the future of sustainability. We are operating in a more environmentally conscious manner and educating the millions of patrons that attend Toyota Center events each year regarding ways they can help.” Through the LEED green building certification program, the U.S. Green Building Council is transforming the built environment. The green building movement offers an unprecedent-
toyota center and Houston rockets Earn LEED silver certification from usGBc
The Houston Rockets and Toyota Center have earned LEED Silver Certification for Existing Buildings: Operations and Maintenance from the U.S. Green Building Council (USGBC). Toyota Center becomes
Leave Houston Arrive Lagos WintEr 3:45 p.m. 9:40 a.m. 9:15 a.m. suMMEr 3:50 p.m.
8 | OppOrtunity HOustOn
Leave Lagos 11:10 a.m. 10:45 a.m.
Arrive Houston 4:40 p.m. 4:40 p.m.
pHOtOs: (LEFt) istOck; (ABOvE) GHp
The Houston Rockets at Toyota Center
ed opportunity to respond to the most important challenges of our time, including energy conservation and environmental impact on the broader community. For Toyota Center, some of the performance standards achieved include: • A 50 percent reduction in landscape watering requirements. • Optimization of energy performance by reducing consumption levels to gain Energy Star recognition. • Increased indoor air quality by exceeding the most stringent standards set by ASHRAE. • Introduction of a high-performance green cleaning program. • Attainment of innovation points through efforts such as Green Committee projects, Green Games, community outreach efforts and e-cycling events.
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OppOrtunity HOustOn | 9
12393-WFS-OppHouston-ad4.indd 1 8/31/09 4:15:58 PM
Calpine’s Jack Fusco leads the clean energy producer into a bright future
BY KEN SCHNEIDER
“More speciﬁc to our business as an independent power producer, the state of Texas has established a stable, wellfunctioning, deregulated marketplace for electricity,” said Fusco. “Its central location to our other important markets in California and the East, along with multiple airports and competitive airline service, makes it a compelling logistical choice. “More particularly, Houston is a great place to do business. In addition to a deep, experienced, well-educated work force that understands our industry inside and out, HousJack Fusco ton offers a diversiﬁed and resilient economy and a business-friendly tax structure. In 2009, Calpine, the nation’s largest For our employees, Houston provides wholesale independent power pro- reasonably priced housing and a comducer, moved its corporate ofﬁces fortable standard of living.” from San Jose to Houston. President Calpine is also a vital energy partand CEO Jack Fusco would be the ner and provider to the region. Fusco ﬁrst to say that Houston was the logi- noted that they operate almost 10 cal choice. “It simply makes sense for percent of the total installed electric Calpine to be here. We’re capable of generation capacity in Texas, and providing nearly 29,000 megawatts of eight of their 12 power plants in the clean, cost-effective, reliable and fuel- state are located in the region. Most efﬁcient power from 93 power plants of these plants are combined heat to customers and communities in 21 and power facilities that concurU.S. states and Canada.” rently and efﬁciently produce power and steam for industrial clients. Also As the Energy Capital of the World, called cogeneration plants, these faHouston offered a unique mix of ad- cilities are vital to their customers vantages that other locations didn’t. along the Houston Ship Channel,
10 | OPPORTUNITY HOUSTON
who themselves are vital to the Houston economy. He went on to note that Calpine is an important part of keeping the lights on and the residents of Houston cool. Finally, as the largest consumer of natural gas in the country, Calpine helps support local and domestic natural gas production that helps create jobs and assures a secure source for their fuel needs. Calpine offers clean, environmentally friendly power. “Environmental leadership has been a governing principle for Calpine since it was founded more than 25 years ago,” said Fusco. “We remain committed to safely and responsibly meeting the needs of an economy that demands cleaner, more fuel-efﬁcient and reliable sources of electricity. Our greenhouse gas footprint is the smallest in the industry. “We accomplish this by focusing on clean-burning natural gas and renew-
Deer Park Energy Center
able geothermal generation, and that is what sets us apart from our competitors.” Two good examples of how the company backs up this vision with actions: • First, earlier this year, they obtained an air quality permit for a plant to be built near San Francisco that is subject to a first-ever limit on greenhouse gas emissions. They voluntarily agreed to abide by stringent carbon emissions limits and are the first power company in the nation to take such a step. • Second, in April they contracted to buy 19 plants in the Mid-Atlantic region, two of which were being operated on coal, and announced they would discontinue the use of coal upon closing the acquisition and instead operate the plants on far cleaner natural gas. “While many power companies struggle with the imperative of balancing reliability with sustainability, Calpine, through sound environmental practices, disciplined management and detailed focus on operations and costs, is blazing new trails on America’s journey toward a cleanpower future.” In Texas and other states, Calpine’s natural gas plants serve multiple critical functions in the electric system. First, some of their plants operate 16 or more hours a day in many markets, providing a steady, reliable supply of power to their wholesale customers. Second, some plants, although capable of running more, are used primarily during the day when demand steps up. Third, their cogeneration plants create the steam critical to America’s industrial production in a highly efficient manner that is encouraged by the U.S. Department of Energy. Finally, many plants are highly flexible and can be quickly turned on or ramped up to meet peak loads on very hot or very cold days when demand is greatest and,
in this era of increasing production from intermittent renewable sources like wind and solar, to help keep the grid reliable. In describing how Calpine’s approach to operations sets the company apart, Fusco said, “Since I joined the company two years ago and moved the headquarters here to Houston, we have implemented a centralized model that provides policies and support to our plants in a variety of areas ranging from procurement to engineering to environmental health and safety. Most importantly, we have pushed greater responsibility and accountability to plant management and employees for their operating performance. This approach maximizes our buying power,
saving us tens of millions on an annual run rate, and allows our employees across the country to share best practices, while also improving each plant’s operating metrics.” Calpine is well positioned to supply efficient, clean power well into the future. When asked if there are obstacles or speed bumps ahead that could affect growth, such as impending government legislation, upcoming environmental restrictions, technological limitations, or market conditions, Fusco replied, “Trends that might be obstacles for some of our competitors actually present significant opportunities for Calpine,” he replied. “Whether it happens tomorrow or next year or in three years, we can be certain that stricter environmental regulations for
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OppOrtunity HOustOn | 11
the power sector are inevitable. “That said, Calpine has not waited for government or regulators to tell us what to do—we have taken the initiative to adopt environmentally responsible practices across our fleet. “With respect to the markets, you will recall that almost 20 years ago Congress set the power industry on a course toward competitive generation markets, giving the states wide latitude on how to implement that national goal. Those markets have demonstrated that competition in the wholesale generation of power has benefited the consumers in all major markets, including the Electric Reliability Council of Texas (ERCOT), by delivering lower prices than would have been possible under a fully regulated, monopolistic regime. The major markets have matured well, yet like all competitive markets they need to remain ever vigilant and receptive to change to assure that the correct price signals are being sent to companies that are capable of investing in those markets so that future generations will have reliable, affordable power. A major plant involves a capital commitment approaching $500 million or more, plus years of planning, permitting and construction. If the market is not permitted to send a clear signal to investors such as Calpine that it will be able to make a fair return on its investment, the capital will not be allocated to that market, and if others see it the same way, the market could be in short supply, with consequent impact on price volatility. For this reason, we continually engage with market administrators and oversight regulators to advocate for fair and open markets that do not distort these signals, for the long-term health of the market and the economy.” With visionaries like Jack Fusco leading important energy players like Calpine, the Houston region has added yet another impressive jewel in its crown as the Energy Capital of the World. And we look forward to hearing more from Fusco and Calpine in the months and years ahead.
12 | OppOrtunity HOustOn
TO THE GREATER HOUSTON PARTNERSHIP
CONGRATULATIONS GHP MEMBER WINNERS OF THE CHRONICLE 100
THANK YOU FOR HELPING HOUSTON LEAD THE NATION IN JOB GROWTH AND ECONOMIC PROSPERITY
Administaff Atwood Oceanics Baker Hughes BJ Services BMC Software Calpine Corp Cameron International CenterPoint ConocoPhillips Cooper Industries El Paso Pipeline Partners Enbridge Energy Partners Enterprise Products Partners FMC Technologies Group 1 Automotive Halliburton KBR Kirby Corp. Marathon Oil National Oilwell Varco Oceaneering International Oil States International Parker Drilling Co. Plains All American Pipeline Pride International Schlumberger Service Corporation International Spectra Energy Sysco Corp Targa Resources Partners Waste Management Weatherford International Weingarten Realty Investors Westlake Chemical Group
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Houston Chronicle 100
Signature business awards program ranks Houston’s hottest companies
by ken schneider
HIS YEAR’S Houston Chronicle 100, the newspaper’s annual ranking of the region’s top 100 public companies, produced several surprises. In addition to the usual energy-related companies, the 2010 list included firms involved in everything from discounted menswear to funeral arrangements, trash collection to adult entertainment, car dealerships to medical waste. Energy remains the lifeblood of much of the Houston economy. More than half of the companies on the list, and six of the top ten, are in the energy industry. According to Loren Steffy, business coulmnist for the newspaper, “Houston’s economy remains heavily influenced by oil and natural gas prices.” The Chronicle 100 list, prepared for the newspaper by Standard & Poor’s Capital IQ, ranks Houston’s top public companies by a score based on four measures of financial performance in 2009: total revenue, revenue growth, earnings-per-share growth and one-year total return to shareholders on a dividend-reinvested basis. The companies are ranked in each category, and those rankings are averaged to form the Top 100—so the lowest number represents the highest rank. This year’s winners include: Administaff, Atwood Oceanics, Baker Hughes, BJ Services, BMC Software, Calpine Corp., Cameron International, CenterPoint, ConocoPhillips, Cooper Industries, El Paso Pipeline Partners, Enbridge Energy Partners, Enterprise Products Partners, FMC Technologies, Group 1 Automotive, Halliburton, KBR, Kirby Corp., Marathon Oil, National Oilwell Varco, Oceaneering International, Oil States International, Parker Drilling Co., Plains All-American Pipeline, Pride International, Schlumberger, Service Corporation International, Spectra Energy, Sysco Corp., Targa Resources Partners, Waste Management, Weatherford International, Weingarten Realty Investors and Westlake Chemical Group. Laura Goldberg, Business Editor of the Houston Chronicle, said that the rankings give an accurate annual snapshot of the past year’s performance of the region’s economy. “For the past 13 years, the Chronicle 100 has showcased the performances of Houston public companies, giving the community a sense of the depth of the corporate landscape in Houston. It also gives the Chronicle a chance to highlight different companies each year. It’s valuable information for anyone who wants to know what’s going on in the Houston economy.” For information, visit www.chron.com/business/100/.
OppOrtunity HOustOn | 13
The headquarters for headquarters
Twenty-five Fortune 500 companies call the Houston region home
BY ANJUL I BL AIR
14 | OppOrtunity HOustOn
As tHe siXtH-lArgest metro area in the country, the Houston metropolitan region is home to more than 5 million people and a host of businesses. the city’s title as the “energy capital of the World” is a bit misleading, since the area is actually a magnet for companies in all industries. Of the companies on the 2010 Fortune 500 list, 25 have their corporate headquarters located in and around the Houston metro area, as do many others on the Fortune 1000 list. Among them are such top names as calpine, Waste Management, fMc technologies and sysco. in fact, Houston ranks third in the nation, after only new york and chicago. in addition to the area’s many corporate headquarters, an even larger number of international companies run their u.s. administrative headquarters from the 10-county region. take a look below for a sampling of the companies that have made Houston their corporate home and clues to what keeps them here.
Houston ranks third on the Fortune 1000, after only New York and Chicago
One of the world’s foremost engineering procurement and construction companies, KBR dates back to the early 20th century. In 1901 Morris W. Kellogg opened what would later be known as the engineering firm M. W. Kellogg. Advances made by M. W. Kellogg laid the foundation for the petroleum refining and petrochemical processing facilities and included building the world’s first catalytic cracking facility and Europe’s first crude oil–based liquid ethylene cracking facility. After a successful and impressive nine decades on its own, M. W. Kellogg was purchased by Dresser Industries in the late 1980s. After World War I ended, brothers George and Herman Brown, along with their brother-in-law Dan Root, created Brown and Root, a construction company based in Houston. The company grew quickly and by 1940 had received a contract to build the Corpus Christi Naval Air Station. The success of that undertaking led to a second contract, to build a ship for the U.S. Navy. In the years to come, Brown and Root would construct 359 vessels for the navy. The company’s business then moved from on the sea to in the sea as Brown and Root took a major step into offshore rig building. The company achieved an amazing feat when it erected the first offshore oil platform 43 miles off the coast of Louisiana in 1947. Soon Brown and Root stood out as a leading offshore rig builder, road construction company
OppOrtunity HOustOn | 15
pHOtOs: (left) istOck, (rigHt) istOck, kbr
and general contractor, and the company was bought by Halliburton. Eighteen years after that first Louisiana oil platform, Brown and Root accomplished another first, this one on the other side of the pond: it built the first offshore oil platform in the North Sea. Halliburton later purchased Dresser Industries and combined M. W. Kellogg with Brown and Root to create Kellogg Brown and Root, or KBR. KBR remained part of Halliburton until its separation in 2007. The Houston-based company is now a main contractor for the U.S. Department of Defense, the largest contractor for the U.S. Army, and sits at #193 on the Fortune 500 list. KBR has an extensive scope of divisions, which include but are not limited to Gas Monetization, Infrastructure and Minerals, North American Government and Defense, Oil and Gas, Power and Industrial, Services, and Technology. That scope was recently broadened when, in 2008, the Services division acquired a company out of Alabama called BE&K, opening the door for KBR to make its way into the power, chemicals, pharmaceutical and health-care industries. “Even as the company’s business has evolved to serving clients and customers in over 45 countries around the world, the roots of KBR’s business are grounded in Houston,” said Heather Browne, Director of Communications. “That legacy remains the foundation for the company’s business and is a driving factor in why KBR remains headquartered in Houston.” Staying true to its Houston roots, KBR takes a proactive approach to maintaining important community relationships by participating in and sponsoring many community events. In 2009, members of KBR’s Impact Young Professionals raised over $220,000 for Houston-area charities by organizing a Master of the Green charity golf tournament. In another KBR-sponsored event called Wreaths Across America, employees honored fallen soldiers by placing wreaths at the soldiers’ headstones in both the Houston and the Raleigh National Cemeteries. KBR also raised nearly $50,000 through sponsorship and participation in the Susan G. Komen National Race for the Cure.
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FOUNDED IN the fall of 1980, international leader in business service management and award-winning company, BMC Software has roots deep in the heart of Texas with its corporate headquarters located in Houston and another office in Austin. As IT has evolved to be a critical part of many businesses, BMC has emerged as a leading provider of solutions that manage IT assets and ensure that a company’s technology is responsive and supportive of the overall business. BMC provides a broad platform of solutions that help its customers cut costs, reduce risk and drive business profit. BMC counts enterprise heavyweights such as Accenture, Cisco, Dell, Salesforce.com, Microsoft, Oracle, SAP and IBM as key partners. In fact, a whopping 80 percent of the Fortune 500 list rely on BMC Software for their businesses. In 2009, BMC won the 22nd annual CIO 100 Award from CIO Magazine. The award, whose recipients’ accomplishments are scrutinized by a team of 40 judges, honors 100 IT companies who are implementing effective and innovative internal IT solutions that create business value. Employing over 6,000 people world-wide, BMC is No. 872 on the 2010 Fortune 1000 list. For the four fiscal quarters ended June 30, 2010, BMC revenue was $1.92 billion.
pHOtOs: (left) kbr, (rigHt) us OncOlOgy
being in Houston, which is rich in human capital in health care and business, helps us stay strong and manage the challenges of the economy and health-care headwinds.
—David Bronsweig, Executive Vice President, Human Resources, U.S. Oncology
LEADING THE WAY in cancer care, research and patient advocacy, as well as holding the #646 slot on the Fortune 1000, is US Oncology, based in The Woodlands. Many know the name US Oncology, but what they may not know is that more than 850,000 patients nationwide have been aided by the organization, whose aim is to bring the latest and most effective cancer care to every community. That aid has been supplied through the more than 500 care centers that are associated with US Oncology, including approximately 100 centers for radiation and 1,300 physicians. Assistance also comes by way of financial support, totaling over $80 million for more than 10,000 patients. Creating the largest research and cancer care network focusing on the individual community, US Oncology brings together physicians specializing in each disease type and encourages collaboration for continued progress and innovation. All segments of US Oncology are vital to those it reaches, but one area that demands notice is its research division. Conducting every phase of clinical trials, US Oncology has helped to develop 40 new FDA-approved cancer treatments collaboratively with the nearly 43,000 patients who have participated in research studies. Those new treatments make US Oncology a major player in recent cancer care advancements.
US Oncology opened its corporate headquarters in The Woodlands in March 2009. David Bronsweig, Executive Vice President of Human Resources, said The Woodlands was the obvious choice for the company. The strong business presence, good economy, relatively low cost of living and diversity make the community very appealing to those who already call it home and to potential employees alike. “The Woodlands is an attractive community to raise a family,” Bronsweig said. “The public schools are some of the best in the Houston area, and there are several topnotch private schools available. The amenities are plentiful—good cuisine, great entertainment, nice cultural events—and most important, the community is a safe environment.” Bronsweig added that the scenic Texas Hill Country, proximity to the coast and escape from harsh winters are other distinctions that definitely aren’t scaring away any prospective recruits. As a national company in an increasingly competitive industry, US Oncology uses the appeal of The Woodlands, the selection of local talent and the favorable Houston economy to further its success. Bronsweig has been with the company for more than two years and said that in that
OppOrtunity HOustOn | 17
time he hasn’t seen the Houston economy go through the downturn that the rest of the nation has suffered. “The Houston economy has remained relatively strong in light of the recent economic downturn,” Bronsweig said. “Other than a slight slowdown in hiring, there doesn’t seem to have been a substantial impact on the business climate.” US Oncology has been doing its part to contribute to the prosperous Houston economy. Over the last several months it has increased its recruiting efforts and has been drawing from the talent available in the local work force to support and grow the organization. Though the company enjoys a great deal of potential in this situation, there is still one roadblock that US Oncology and the rest of the health-care industry can count on: cost control. “We have and will continue to have challenges with cost control in health care,” said Bronsweig. ”Being in Houston, which is rich in human capital in health care and business, helps us stay strong and manage the challenges of the economy and health-care headwinds.”
THE RECORD-BREAKING FMC Technologies has come a long way from its beginnings as a late-19th-century California spray pump company to its designation as Fortune’s World’s Most Admired Oil and Gas Equipment Services Company for 2010. What began as the
IN TER NATI ON AL CON NEC T IO NS
With Houston’s extensive foreign trade and cultural ties to countries around the world, the demands of today’s fast-paced and highly competitive international business environment can be met with the resources required for your company’s success. • Houston’s foreign commercial ties exceed 3,100 firms and organizations trading more than 259 types of products and services in 17 regions around the globe. • At present, more than 800 firms in the Houston region (with 137 headquartered in Houston) maintain more than 36,000 subsidiary locations in 196 countries. • foreign firms representing 60 countries operate 975 subsidiary locations in the Houston region. foreign consulate representation and international banking • foreign governments have established 92 consular offices in metropolitan Houston, ranking Houston third behind new york and los Angeles. • twelve foreign countries have representation through Houston’s 22 foreign banks.
SOURCE: Greater Houston Partnership; Texas Govenor’s Office; Uniworld Business
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pHOtOs: fMc tecHnOlOgies
Bean Spray Pump Company, which built agricultural equipment, went on to become Food Machinery Corporation after merging with the makers of foodprocessing equipment and cannery machinery. The company evolved further as it began to make tractors and tanks for the military with the onset of World War II. After the war, FMC pioneered continuous freezers, which allowed for assembly-line production of prepackaged foods, made significant advancements in the sterilization of canned foods, acquired chemical and petroleum equipment and started going by the name FMC Corporation. For the next several decades, the company continued to grow and cultivate its business. In 2000, FMC Corporation reorganized to become two separate publicly held companies, the first a chemicals business that kept the name FMC Corporation and the other the Houston-based FMC Technologies. Today FMC Technologies is one of the leading providers of technology solutions for the energy sector and occupies the #467 spot on the Fortune 500. Since its severance from FMC Corporation, FMC Technologies has created quite a list of accomplishments for itself. It developed the world’s first major high-pressure/high-temperature vertical subsea tree system in 2004, and achieved the world’s water depth record of 7,570 feet with the installation of subsea trees for Shell’s Coulomb project. The company broke the previous record once more in 2007 with the deepwater completion of 8,995 feet in the Gulf of Mexico for the Independence Hub project. Last year FMC was awarded a contract from Anadarko Petroleum for the oil and gas industry’s first 20,000 psi subsea wellhead system.
ORIGINALLY ESTABLISHED in San Jose, California, in the mid-80s, Calpine Corporation is # 338 on the Fortune 500 list. The ability to provide clean, cost-effective, dependable and fuel-efficient electricity all over the U.S. and Canada has shot Calpine into the limelight as one of the nation’s leading power companies. Operating low-carbon, natural gas-fired and renewable geothermal power plants, the company has created and maintains the greenest power plant fleet in the world. As Calpine flourished, more and more of its employees were located in Houston, eventually spurring the company to relocate its corporate headquarters. “As Calpine grew to become one of the nation’s largest independent power producers, we needed a commercial organization to support our plants’ needs for reliable, economical supplies of natural gas and to manage the unique financial and risk-management needs of our organization,” said Thad Miller, Calpine’s Executive Vice President, Chief Legal Officer and Secretary. Miller goes on to attribute the establishment of the commercial part of the company in Houston to the city’s wealth of industry talent that was available to draw on, which is largely attributable to a core group of universities in the region. He said that Houston’s status as the world’s energy capital attracts people who understand all segments of the energy sector, from the E&P experts who find and develop the fuel that Calpine uses, to the pipeliners who deliver natural gas to supply its plants, to the accounting, financial and consulting industry experts who understand and support operations on both the power production, and the commercial sides of the business. Then, as the power market in Texas was deregulated, Calpine began to acquire a number of plants in the state as well. Ultimately, once these important components were in place, it made sense for the company to relocate its corporate headquarters to Houston. “A number of factors make Houston a great place to do business,” said Miller. “The local economy is strong and resilient, and the absence of a state income tax in Texas offers advantages for businesses and employees alike. Companies here draw from a well-educated work force, and reasonable housing costs make Houston an attractive and practical place to live.”
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t y p e s O f cOM pA nies in tH e r e gi O n W it H fOreign tr A De ties
finance & insurance 5% Other 10% Manufacturing 24% professional services 17% brokers & traders 5% engineering & construction 7% telecommunications 5% Wholesale retail trade 12%
energy 5% transportation 10%
WOrk fOrce: eMplOyMent prOJectiOns
E MP LOY ME NT P ROJ E C T I O NS BY A R E A OF OCCU PATION Occupation Sectors Management, business & financial Occupations professional and related Occupations service Occupations sales and related Occupations Office and Administrative support Occupations production Occupations All other Occupations Total All Occupations 2009 Employment 2016 486,322 785,269 718,828 500,390 551,240 230,125 695,029 3,967,203
Houston’s population and work force continue to grow at a rapid pace, thus ensuring a ready supply of talent for years to come. Change 78,961 136,726 141,333 75,338 69,787 22,484 96,401 621,030 Percent Change 19% 21% 24% 18% 14% 11% 16% 19%
407,361 648,543 577,495 425,052 481,454 207,641 598,627 3,346,173
note: Data is for the Houston-sugar land-baytown Metropolitan statistical Area. total employment includes wage and salary employment plus farm and non-farm proprietors. proprietors include those who fully and partially devote their time to their proprietorship. totals may not add due to suppression and rounding. Source: Workforce Solutions, EMSI Complete Employment - 3rd Quarter 2009 and Texas Workforce Commission
ALTHOUGH THE FINAL two companies discussed here do not appear on the Fortune list (yet), these interesting and promising companies are worth mentioning. Born in 1985 as an engineering company to serve the pharmaceutical and chemical industries, Dynamic Engineering is another of the many successful companies that call Houston home to its corporate headquarters. Other cities such as Atlanta, Chicago, Newark and Research Triangle Park in North Carolina were considered as possible headquarters for DEI, but Houston stood above the rest because of its engineering talent, its international airport and the number of large engineering, procurement and construction companies with major offices located in the area. “It’s the top chemical engineering metropolis in the world,” said DEI President Kevin Drumm. He also said that while engineering talent was at a cost peak at the time when DEI moved into Houston, the cost was far outweighed by the flexibility and accessibility of the contract work force. “The downturn in [the] global economy in 2009 resulted in a busi20 | OppOrtunity HOustOn
ness slowdown,” said Drumm. “Having a flexible work force enabled us to manage personnel costs.” Making connections with other industry-sharing companies in the Houston area has also aided DEI’s continued growth and success. Marketing and engineering alliances, along with engineering subcontractor and research relationships, have fostered the execution of large projects while allowing DEI to manage growth and internal staffing. DEI, which provides engineering services in polysilicon production
and clean room technologies, has a total of more than 10 million hours of engineering experience. Since its beginnings, DEI has added to its repertoire to include process research and development required to generate enhanced technology for dedicated trichlorosilane production and optimal high-yield plant design for electronic and solar-grade polysilicon. Today, DEI is considered to be a principal supplier of trichlorosilane (TCS) process technology for existing and new entrants into polysilicon for the photovoltaic (PV) industry.
BRINGING A UNIQUE twist to the Houston business sector is Farouk Systems. The company, which is owned and operated by former hairdressers, employs more than 2,500 people. Farouk Systems manufactures high-quality professional hair care and spa products, including the CHI and BioSilk lines. The company uses NASA technology, so being located in Houston makes perfect sense. In fact, the Senior Vice President of Technology is a former NASA Senior Scientist and was with NASA for more than 30 years. Proximity to NASA isn’t the only reason Farouk Systems keeps its headquarters in Houston. Like many others, the company appreciates the international airport, the Port of Houston, and of course, the people. Founder and Chairman of the Board Farouk Shami began his business in Houston more than 20 years ago “The people, Houstonians, are the best people you can have working for you,” said Farouk Systems Director of Public Relations Jessica Gutierrez. “Farouk started his business here, and when it exploded, he remained faithful to Houston and kept expanding here,” said Gutierrez. “He felt that God had blessed him in Houston; therefore it was important for him to expand here.” And expand in Houston he did. During times of economic trouble, Farouk Systems has opened a brandnew facility, bringing more jobs to the Houston area. With the outstanding work force, networking and collaborative possibilities, and favorable business climate, Houston stands as a prime spot for successful companies and their corporate headquarters. As local industries continue to flourish and evolve, the 10-county region will continue to welcome even more corporate neighbors.
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pHOtOs: (left) DynAMic engineering, (rigHt) fArOuk systeMs
quality of life cortex:
satisfying your work force’s personal and professional life
cost of doing business lobe:
Making sure you’re in the most affordable place to do business
gion Houston Re
work force cortex:
putting capital in motion with a quality and abundant talent pool
rg ston.o Hou www.
.org ouston www.H
expansion opportunities lobe:
Ensuring a company’s vision is carried out from headquarters to beyond
business incentives lobe:
Motivating factors for selecting the right company home base
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of Locating a C o r p o r a t e Headquar ters
B Y K A T I E M C C A R T H Y
infrastructure lobe :
the facilities and network system which allow your company to function in the near and long-term
Robert Ady, President, Ady International Company, on the science of ideal corporate headquarters locations
In an era of globalization, 24-hour news cycles, increased connectivity and closer customer access, corporations encounter the need for a faster, more complex way of doing business. As traditional barriers break down, companies are finding a world of new opportunities and new ways to operate in increasingly global markets, always seeking to surpass their competition. A superior location for a corporation’s headquarters can offer a distinct advantage, and some corporations find it in their best interest to relocate. A relocation can benefit not only the corporation but its internal and external stakeholders, as well as the city selected as its relocation destination.
OppOrtunity HOustOn | 23
H IGH TECH H EA DQ UA R
Five companies on the 2009 Deloitte 500 list are headquartered in Houston. Rank 113 126 141 272 279 Company ERF Wireless, Inc. RigNet, Inc. Additech, Inc. ObjectWin Technology, Inc. PreCash 2007 Revenues ($000,000) 5,155 89,411 12,956 48,284 84,621
or cities, attracting corporate headSource: Deloitte Development LLC, 2009 quarters remains an elusive art. Few major corporations relocate each • Rankings are based on business being in business at least five years, headquartered in year, perhaps no more than four or responsible for a majority of the growth, and growth in revenues. Firms must also have ﬁve. Corporate headquarters relocaleast $5 million U.S. or Canadian Dollars, and are ranked on ﬁve-year revenue percentage tion conversations take place behind the scenes, since even a rumor of a company moving from one state to another can cause an uproar as politicians and citizens mount a ﬁght to keep the corporation at its current location, and any negative publicity that emerges can affect the company’s bottom line. The beneﬁts and challenges of availability, expansion oppora signiﬁcant corporate headquartunities and business climate. TWENTY-FIVE COMPANIES ters relocation are many. RelocaInternal drivers relate to the ON THE 2010 FORTUNE 500 tion cities must meet the needs of in-house operations of the comLIST ARE HEADQUARTERED IN relocating corporations to ensure pany, including organizational THE GREATER HOUSTON AREA. smooth transitions. How does a structure, culture, leadership, COMPANY RANK city go about attracting corporate image and the company’s vision headquarters? Well, for one thing, of its future. ConocoPhillips 6 it consults an expert. Robert M. Marathon Oil 41 WH AT A R E TH E Ady, President of corporate site seSysco 55 TRENDS IN CORPORATE lector Ady International Company, Enterprise GP Holdings 92 HEADQUARTERS RELOCATION? has identiﬁed optimal locations Plains All American Pipeline 128 Corporate relocations defy for more businesses in the United Halliburton 158 trends. Companies are moving States than any other individual. National Oilwell Varco 182 all across the country in various He offers his views on the chalContinental Airlines 183 directions. For every relocation lenges and rewards of corporate KBR 193 to a major city from a suburb or a headquarters relocations. Waste Management 196 rural community, there is probaBaker Hughes 243 WH AT D R I V E S bly a relocation from a major city Andarko Petroleum 260 CO M PA N I E S TO R E LO C ATE ? to a smaller town or suburb. Apache 271 It’s rare when only a single deﬁcienCompanies make relocation CenterPoint Energy 275 cy leads to a relocation or a speciﬁc decisions on a subjective level. Smith International 277 event triggers a move. Most often it Relocation criteria are unique Kinder Morgan 315 is a number of issues and incremenfor each company. Companies Calpine 338 tal changes that trip the ﬁnal reloseeking a campus-style facilEnbridge Energy Partners 364 cation decision. ity with a more relaxed lifestyle Cameron International 399 Companies facing a move considwill choose a suburban location. EOG Resources 434 er their external and internal drivCompanies seeking various auxSpectra Energy 437 ers. External drivers relate to the iliary services, such as legal, acEl Paso 447 existing geographical placement counting and specialized equipGroup 1 Automotive 457 of the facility, including the labor ment ﬁrms nearby, will choose a FMC Technologies 467 market, infrastructure, air-service downtown location. Frontier Oil 488
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PHOTOS: (PREVIOUS PAGES) GETTY; ADY-VOLTEDGE, INC.
5-Year Growth % 1486 1220 1057 489 459 Industry Communications Communications Communications Software Software
WH AT A DVA NTAG E S D O E S A R EG I O N L I K E H O U S TO N H AV E FO R AT TR AC TI N G CO R P O R ATE H E A D Q UA RTE R S ?
North America, having proprietary technology current-year operating revenues totaling at growth with a base year of at least $50,000.
The Houston region is a major player for corporate headquarters relocations. First, it is already a very sophisticated corporate headquarters location. Companies relocating will become part of the culture and the environment of the Houston area. Houston has developed an infrastructure to accommodate major corporate headquarters, including an international airport, a pro-business attitude, and a sense of local leadership working with companies considering the area. Houston offers a number of site possibilities, first-class downtown office space, and considerable suburban office space. The Houston region also is an integral part of the overall pro-business climate of the state of Texas. Many companies evaluate not only the city itself but also the state.
H OW D O S TATE A N D CIT Y I N CE NTI V E S A FFEC T CO R P O R ATE H E A D Q UA RTE R S R E LO C ATI O N ?
H OW D O E S H O U S TO N L E N D IT S I M AG E A N D B R A N D I N G P OTE NTI A L TO CO R P O R ATE H E A D Q UA RTE R S ?
Incentives play a role in relocation, but not as large a role as many people believe. If a location is not right for a corporation, no level of incentives will make it right.
H OW D O YO U D ETE R M I N E G O O D C A N D I DATE CITI E S FO R CO M PA N I E S LO O K I N G TO R E LO C ATE O R E X PA N D?
Different companies have different requirements. In site selection, we evaluate the company. Each company has its own set of needs and priorities. We start by spending a considerable amount of time with the company, learning about its culture, its goals, its objectives and its long-term strategy. We take these criteria and we evaluate them. We then convert them into speciﬁc factors that would relate to speciﬁc locations.
WH AT D O TH E FU TU R E H E A D Q UA RTE R S R EG I O N S LO O K L I K E ? TH AT I S , WH AT S O RT S O F A M E N ITI E S / L A B O R FO RCE / L I FE S T Y L E / FI N A N CI A L B E N E FIT S / I N FR A S TRU C TU R E , ETC . , WI L L E NTI CE CO M PA N I E S ?
Houston’s image is very positive. With its strong base of existing corporate headquarters, it shows relocating companies that it has the right community to support additional headquarters. Companies ﬁnd it difﬁcult to move to a location that does not already have other corporate headquarters in place. Houston also has a strong existing corporate network. Its pro-business atmosphere makes the city more desirable as a headquarters destination. Houston is seen as a great place to run a business. The Houston image is one that is very popular with corporations.
WH AT I S TH E FU TU R E O F CO R P O R ATE H E A D Q UA RTE R S R E LO C ATI O N ?
Companies are looking for locations that ﬁt their longterm objectives. Successful headquarters locations offer a variety of attractive community features, such as a strong labor market, affordable commercial and residential real estate, future expansion options, cooperative city leaders and a great ﬁt for the company’s corporate culture.
Corporate headquarters relocations will continue in the future. Companies will continue to seek out new locations once their existing locations no longer meet their operational requirements. Along with locations and operations, corporate headquarters relocations will be driven by other factors, including changes in corporate leadership, changes in local regulation, new taxes and rising costs. Whatever the reason, a relocating company will always be a great thing for cities. Relocating headquarters offer their chosen cities a huge infusion of outside talent, additional participation in civic activities and community projects, a signiﬁcant increase in air travel, an increase in housing demand and, ﬁnally, new residents looking to make the new city their home.
OPPORTUNITY HOUSTON | 25
texas Governor Rick Perry in a “Salute to texas”— texas Week, US Pavilion, Shanghai World Expo Kevin Fitzpatrick, trick Roping
Shaking hands after signing MOU, Mr. Massey Villarreal, Board Member, Greater houston Partnership and Mr. Liu Jinping, Deputy Director General, Shanghai Foreign investment Development Board, Shanghai Overseas investment Development Board (SFiD)
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Houston Region and Texas on Show at Shanghai World Expo 2010
The Expo shines a light on regional economic development opportunities while providing a cultural exchange between China and the Houston region
By M at t S M i t h
OppOrtunity HOustOn | 27
houston Mayor annise Parker presenting Guo Jinlong, Mayor of Beijing a basketball signed by houston Rockets’ yao Ming
N MANY WAYS, the China written about in history books is history. Once an isolated country bound by its strict adherence to tradition, China today is an inﬂuential economic powerhouse with ties that span the globe. The world ﬁrst got a glimpse of the new China at the 2008 Summer Olympics in Beijing. If the Olympics were a coming-out party for the new China, the Shanghai World Expo 2010 is an extravagant display of the country’s economic dominance and emerging role as a leading nation. More than 190 countries and 50 international organizations gathered in Shanghai for the Expo, which kicked off in May and will wrap up on October 31. “With the goal of promoting the global exchange of ideas and the development of greater international relationships, the World Expo allows countries and exhibitors to meet and display their achievements in commerce, science, culture and technology,” said Aaron Demerson, Executive Director of Economic Development and Tourism at the Ofﬁce of the Governor. Texas is one of only three states to serve as sponsors for the expo’s USA Pavilion—Hawaii and Tennessee are the others. With the theme “Rising to the Challenge,” the pavilion presents the United States as a place of opportunity
28 | OppOrtunity HOustOn
and diversity where people come together to change their communities for the better. It also showcases the many economic development opportunities and tourist attractions Texas has to offer. The USA Pavilion featured a “Salute to Texas Week” from June 12 to 19. Governor Rick Perry and First Lady Anita Perry led a delegation of state, business and tourism leaders representing Texas at the special event. “With China’s status as one of Texas’s largest trading partners, and with numerous Chinese and Texas businesses and individuals working and visiting the two destinations, the time for an ofﬁcial visit could not be more opportune,” said Demerson. The Greater Houston Partnership, the primary advocate of the Houston business community, joined the Texas delegation in June and returned in August with the City of Houston. GHP is also a co-sponsor of the USA Pavilion. In June, GHP led a delegation of Houston business leaders in meetings with governmental ofﬁcials and corporate decision makers in Wuxi City and Beijing. “Our region is a leader in international business, a magnet for capital investment and expansion, and like Shanghai, has an ideal geographic location,” said GHP Executive Vice President and COO Tracye McDaniel, head of the delegation. Total trade between Houston and China has grown by more than $8.4 billion since 2000, reaching $10 billion in 2009 and representing a compound annual growth rate of 23.2 percent over that period. China is Houston’s
pHOtOs: (prECEDinG pAGEs) GEtty, GHp (ABOVE) GHp
Visitors queue up in front of USa Pavilion
second-largest air cargo trade partner, and imports from China increased 34.4 percent, from $7.4 billion in 2007 to $9.9 billion in 2008. Houston is China’s eighth-largest seaborne trade partner in the United States by value and the ﬁ fth-largest by weight. Houston ranks as China’s 10thlargest trade partner. During the Expo visit, GHP also presented an “Invest in Texas” seminar that focused on investment opportunities in the Houston region. The seminar targeted Chinese investors and included discussion on a range of topics like current business incentives, tax regime, legal climate, ﬁnancing, labor, transportation, economic development and municipal support. GHP also led an “Invest in Houston” workshop with a similar focus during the trade mission. “The purpose of our participation in the Expo and the subsequent mission is to stimulate more trade and investment between the Houston region and China, particularly in major centers of commerce like Shanghai, Wuxi City and Beijing. The Expo gives Houston the perfect opportunity to expand our global footprint and to strengthen our position as a leader in international business,” said McDaniel.
thE hOUStON—ChiNa CONNECtiON
the two economic powerhouses hope to expand upon the business relationships they’ve already forged. the Consulate General of the people’s republic of China is one of Houston’s 92 consular corps members. Of the 11 Chinese-owned subsidiaries in Houston, at least one is headquartered in shanghai: Baosteel America, a metal fabrication company with estimated annual sales of $1.7 million and 20 local employees. the port of shanghai is the world’s second-largest seaport, totaling 508 million metric tons (551.5 million short tons) in 2008. the port of Houston is the world’s 15th-largest seaport, totaling 192.5 million metric tons (212.2 million short tons) in 2008. it was announced in March 2010 that shanghai Chengtou subsidiary shanghai Chengtou Holding and Houston-based Waste Management subsidiary Wheelabrator technologies will work together to build and manage waste at energy facilities in China through the joint venture company shanghai Environment Group. ExxonMobil Chemical Company announced earlier this month that it will build a technology center in shanghai. Construction began on november 29, 2008, on what will be China’s tallest building—a structure designed by Houston-based architect Marshall strabala. upon completion, the 120-story shanghai tower will be one of the 10 tallest buildings in the world. the Westlake Chemical Corporation has opened an ofﬁce in shanghai. the location will serve as the headquarters for the Houston-based specialty chemical company’s China operations.
OppOrtunity HOustOn | 29
The commercial real estate scene in the region
BY N AT H A N I E L J A N E S
Source: Houston Region G.I.S. For more information, visit http:// www.houston.org/economic-development/houston-gis/index.html
HOUSTON TODAY IS A LAND OF OPPORTUNITY for companies looking to establish or relocate their headquarters to a vibrant, global area. From its renowned labor pool to its robust commercial real estate market, Houston is poised for continued growth and success in the second decade of the millennium. Among the many world-class features that attract companies to establish their headquarters here, the city’s work force may be the most compelling. Dan Bellow, President, Jones Lang LaSalle–Houston, said Houston has a very diverse, a very international labor pool, and that’s what a lot of large multinational global organizations want. He continued, “In Houston we’re known for our work ethic, and people ﬁnd the caliber and the quality of the work force here is just tremendous.” A company’s greatest asset is its work force. The accommodation of that talent, the amenities and the general quality of life that Houston has to offer ﬁgure signiﬁcantly in the decision-making process of a company choosing to move its headquarters here. Once that choice has been made, a company will typically employ a large brokerage ﬁrm or a site consultant to provide assistance in ﬁnding the best space to suit its needs. Downtown Houston is the business center, the banking center, the legal and accounting center, and, of course, the energy center, with the presence of the large energy companies located there. A given company with a work force that involves one or more of these business sectors may consider the great public transportation systems that will bring its people to and from work, the food services and the other abundant amenities, and may well choose a central business district location. “But not everybody has to be down there,” said Bellow. “Some companies decide to put their headquarters, or at least their key operations, in Houston, but they will weigh that against a suburban campus environment where that work force may be performing a different function, a work force that may not need to interact with the banks, the accountants, the Dan Bellows lawyers and the courthouses.”
No two companies make these decisions the same way. Several Fortune 500 companies selected downtown Houston as their headquarters because of the central location and the attending amenities, while others selected a more suburban campus feel, closer to the airport perhaps, closer to the labor force. Whichever approach a company takes, it is choosing a region where its employees can enjoy a ﬁrst-rate quality of life and where the company can operate in what is arguably the most business-friendly metropolitan area in America. “One thing you hear constantly is that once you arrive in Houston, you’re welcome the day you set foot here,” noted Bellow. The same can be said of the city itself with regard to welcoming companies to the region. The real estate market in Houston has remained an affordable, strong investment choice in both the residential and the commercial sectors. In fact, according to the Houston Chronicle, the Houston Business Journal and the Houston Association of Realtors, the average cost of a home in the Houston area has gone up year after year, even during 2009. It is widely agreed that Houston’s minimal land use and zoning restrictions have contributed greatly to sparing the city from the brunt of the real estate crisis. Houston does not have the municipal boundaries on land use and zoning that may exist in other markets, which in turn keeps the competitive environment robust and keeps real estate affordable. In most major markets, companies encounter topographical boundaries that limit growth. In contrast, 30 percent to 40 percent of Harris County is still land to be developed, a situation that makes for tremendous build-to-suit opportunities in the area, another option that companies may consider in addition to the established downtown versus suburban campus real estate options. Typically a company would consider a build-to-suit situation (new properties that are built according to the speciﬁcations of that company) when it would be a long-term tenant in the building. Morespecialized properties such as those that perform industrial functions are also a strong prospect for companies looking into the build-to-suit option. Houston is third in terms of Fortune 500 companies choosing to establish their headquarters here, and we may take note of Joel Kotkin’s observation in his recent Forbes magazine editorial “Houston: Model City”: “Between 2000 and 2009 Houston’s employment grew by 260,000. Greater New York City—with nearly three times the population of Houston—has added only 96,000 jobs.” With all its merits, Houston is truly a headquarters for corporate headquarters in the global business environment.
Top Cities for New College Grads
Source: BloomBerg Businessweek—July 16, 2010
Best Cities for Young Professionals
texas southern university
Source: ForBes.com—June 17, 2010
Buffalo Bayou park
Best Cities for Job Growth
Source: new geography and ForBes: large cities ranking – 2010 Best cities For JoBs— april 20, 2010
Largest Population Gain–Harris County
Source: u.s census Bureau— march 23, 2010
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the houston rockets
Top Destination City
Source: u-haul international—april 2, 2010
Results from the 2010 Houston Area Survey
Change Is Here, with More to Come
By ken schneider
OppOrtunity HOustOn | 33
N APRIL 21, Dr. Stephen Klineberg, professor of sociology at Rice University, presented the latest results of the 2010 Houston Area Survey to a Greater Houston Partnership luncheon crowd of several hundred. Titled “Perspectives on a City in Transition,” the survey revealed many eye-opening facts about the region and the multitude of important changes taking place in it.
According to Dr. Klineberg, the research clearly shows that Houston has come far from the days of being an “Anglodominated city riding the oil boom.” Through almost three decades of systematic research, the annual Houston Area Survey has measured this region’s remarkable economic and dedr. stephen mographic transformations klineberg and recorded the way Houstonians are responding to them. No other metropolitan area in America has been the focus of a research program of this scope. And none more clearly exemplifies the trends that are rapidly refashioning the social and political landscape of urban America. Partly in recognition of the increasing value and importance of this research, Rice University officially launched the Institute of Urban Research (IUR) in February 2010, with Dr. Klineberg as codirector. According to the IUR, “the new institute will provide a permanent home for the annual surveys, stimulate other metropolitan research, sponsor educational programs, and engage in public outreach that advances understanding of pressing urban issues and fosters the development of more humane and sustainable cities.” Discussing the significance of the survey results, Dr. Klineberg put historic events in context. He focused on “the two great revolutions of our time, more clearly seen in Houston than anywhere else in the country, happening everywhere. One is the decline of the natural resource economy that was the basis for wealth for both Houston and Texas. You didn’t need education to make money. You needed commodities—land, cotton, timber, oil, human resources. But now education is key. The new restructured economy has been growing inequalities—access to quality higher education among them. “There exists a new understanding that if Houston is going to make it in the 21st century, it has to attract the talent found between the ears of the best and the brightest people in America, who can live anywhere. Houston continues to represent the American future in terms of the ethnic transformation according to Dr. Klineberg. It is now a city in which 70 percent of residents over 60 are Anglo and more than 75 percent under the age of 30 are not. All the growth in Houston during the oil boom was Anglos. Now Anglo population has declined. Literally all the growth in the last quarter century has been non-Anglo growth. So this biracial Southern city dominated by white men has become one of the most ethnically multicultural cities in America. “Those two transformations are happening across America, nowhere more clearly articulated, more focused, more self-evident than in Houston in the 21st century. This is the set of cards this generation has been dealt. The
“houston has to attract the talent Found Between the ears oF the Best and the Brightest people in america .”
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pHOtOs: (previOus pages); tHese pages, gHCvB
“what a great city in which to Be a sociologist.”
“despite their economic worries, residents remain upBeat aBout the houston region.”
question moving forward is how do we seize the opportunities and derail the dangers?” Key findings in this year’s survey include the following:
surVey says . . .
here is a sampling of results from the survey:
82% of residents rated the Houston area “excellent” or “good” as a place to live. 69% believe the increasing ethnic diversity of Houston is a source of great strength for the city. 30% of survey respondents think that living conditions in the Houston area have been getting better over the past four years. 38% are of the opinion that Houston-area living conditions will continue to improve over the next three to four years. a new high-tech knowledge-based, fully worldwide marketplace has replaced Houston’s “resource economy” of the industrial era.
Harris County residents have become considerably more pessimistic about their personal financial situations, even as tentative signs of economic recovery, become evident.
The numbers who said their personal situation had been getting “worse” in the past few years grew from 21 percent in 2008 to 27 percent in 2009 and to 32 percent in 2010. The proportion saying things were getting “better” for them declined from 40 percent in 2008 to 32 percent in 2009 to just 20 percent in this survey. That percentage today is lower than ever recorded in all 29 years of surveys.
Houston-area residents today perceive a much more problematic economy, where jobs are less secure and education more important than ever before.
Over the years, respondents have been asked about this statement: “People who work hard and live by the rules are not getting a fair break these days.” In the 2010 survey, 67 percent agreed with that assessment, up from 57 percent in 2002, 61 percent in 2004 and 59 percent in 2008.
Harris County residents now clearly support a more urban lifestyle.
“During the next 20 years,” the respondents were told, “Harris County will need to build new housing, shops and workplaces for more than a million additional residents.” When asked about the best way to accommodate that growth, 80 percent called for “redeveloping older urban areas to build the new housing and shops where services, streets and sewer lines already exist.” Only 15 percent preferred to “continue to build new suburbs on the edge of existing suburbs.” In the 2010 survey, 73 percent agreed with the assertion that “we need better land-use planning to guide development in the Houston area”; 21 percent believed instead that “people or businesses should be free to build wherever they want.”
the economic anxieties are reflected in declining support for government initiatives.
Those in favor of “federal health insurance to cover the medical costs of all Americans” declined from 74 percent in 2006 to 67 percent in 2008 and to 52 percent in February 2010. Agreement with the statement that “the government should take action to reduce income differences between rich and poor in America” declined from 50 percent in 1992 to 44 percent in 1999 and to 39 percent today.
Despite their economic worries, residents remain upbeat about the Houston region.
Residents have been asked periodically how they would rate “the Houston area in general as a place to live.” The percentage saying “excellent” or “good” has grown consistently over the years, from the already high figures of 63 percent in l983 and 75 percent in 2008 to 82 percent in 2010.
More generally, the data suggests an increasing acceptance of the burgeoning diversity.
According to the U.S. Census, the population of Harris County in l980 was 63 percent Anglo. Today, non-Hispanic whites compose less than 35 percent of the county’s population. One indication of that remarkable change can be seen in the rise of multiracial churches. When the respondents were asked in 2000 if more than 80 percent of the people in the religious services they attend were of their particular ethnic background, 73 percent said yes. In 2010, that figure had dropped to 65 percent, indicating a significant increase in the number of multiethnic congregations. How will the Houston region deal with these changes and others? Indeed, how will the nation? The answers may lie in careful study of the trends revealed. And at the Institute for Urban Research at Rice University, Dr. Stephen Klineberg will enthusiastically share his remarkable insights, even as he prepares for next year’s survey. “What a great city to be a sociologist in!” he confided. Complete sur vey results are available online at iur.rice.edu.
OppOrtunity HOustOn | 35
Culture The Woodlands
Location, Location, Luxury
By DeBorah Mann LaKe
Subhead text TK
above: The Waterway. Below: George and Cynthia Mitchell
HE BUILT IT and they came. Carefully nestled into woods that once rang with the saws of the Grogan Cochran Lumber Company is The Woodlands, a master-planned community 28 miles north of Houston that was carved out of the vision of oil tycoon and philanthropist George P. Mitchell. Its original 2,800 acres, purchased directly from the historic lumber mill in 1964, have been expanded to 28,000 acres, with seven golf courses, 185 miles of hike-and-bike trails, 116 parks, a large lake, a scenic waterway and two major shopping centers. So it’s no wonder that 92,000 people and major businesses including US Oncology, Anadarko Petroleum Corporation, Lexicon Pharmaceuticals and Chevron Phillips Chemical Company call it home. And no sur36 | oPPortunity houston
prise that it was ranked #14 on Forbes’s America: 25 Best Places to Move list in 2009. “It’s a great community for our employees and a growing center of commerce,” said David Bronsweig, Executive Vice President of Human Resources for US Oncology, one of the largest networks of community oncologists and cancer researchers, which moved into its new headquarters there in March 2009. “We are close to amenities in a scenic environment, and people can get out at lunchtime and stretch
their legs along the walking trails and the waterway. It’s very safe here,” said Bronsweig. The 1.4-mile Woodlands Waterway, complete with river taxis, is part of the Town Center, where Market Street—with its almost oldtimey, small-town ambience—offers the latest in retail shopping therapy. For children, there’s Waterway Square’s interactive fountain with a beautiful tile installation by Houston artist Dixie Friend Gay titled The Treasures from Grandma’s Purse. In 1998, when Anadarko began to outgrow its offices in the Greenspoint area, it turned to The Woodlands because of its community spirit and its proximity to the George H. W. Bush Intercontinental Airport. Although the waterway was just lines on an architectural drawing at the time, the company saw the potential. “None of that [the waterway] was here yet, but when we saw the drawings, we thought it would be a great recruiting tool down the road, and it’s turned out to be really, really nice,” said Julie Strubel, Vice President of Human Resources for Anadarko, one of the world’s largest independent energy exploration and production companies. Also in the Town Center is The Woodlands Mall, home to major and boutique retailers as well as a popular carousel. The Cynthia Woods Mitchell Pavilion, an entertainment venue that draws people from throughout the Greater Houston area, is across the street. The Pavilion Park entrance includes a sculpture by Jay Hester, a tribute to the late Cynthia Mitchell that shows her reading to children. “People go out on the waterway right after work to enjoy camaraderie,” Bronsweig said. “We use a lot of the amenities. We hold our large employee meetings at the theater [in Town Center] and have popcorn and sodas.” The Town Center also includes urban residences such as the Waterway Lofts and the Remington Brownstones. Gracefully set apart from everything else are the nine residential villages,
The Woodlands entrance
The Cynthia Woods Mitchell Pavilion
each with its own neighborhoods, schools, shopping areas and parks. When the newest village, Creekside Park, opened in 2007, 1,700 acres were set aside for a nature preserve and named in honor of George Mitchell. As part of the planned Spring Creek Greenway Project, the preserve garnered a Corporate Conservation Leadership Award from the Nature Conservancy of Texas for The Woodlands Development Company. The Woodlands itself has received the Award of Excellence from the Urban Land Institute and the international Nations in Bloom Gold Award. Stunning public art is sprinkled throughout The Woodlands, from the towering Spirit Columns by re-
nowned sculptor Jesus Bautista Moroles at Six Pines and Lake Robbins drives to the running deer of the Monarchs series by Dick Idol at the entrance to Anadarko. Anadarko’s 30-story building was awarded the LEED Green Building Certification by the U.S. Green Building Council in 2009. It also received the 2008 and 2009 U.S. Environmental Protection Agency (EPA) Energy Star Award for its energyconsumption savings. “We’re very proud of the LEED certification,” Strubel said. “Receiving that certification was close to the hearts of the people here who worked really hard on it.” And fitting for a company that now sits amid the piney woods of The Woodlands.
oPPortunity houston | 37
enjoy houston’s art happenings
By Troy SChuLze
robbinschilds + a.L. Steiner C.L.U.E. Part I, 2007
DANCe WitH CAmerA
Live dance performances can be electrifying, spectacular experiences. But have you ever watched one-camera still footage of a Broadway show, a ballet or contemporary dance? It can be excruciatingly boring. Bringing dance alive on film requires a skillful eye that knows when to cut to closeup or move the camera to achieve that perfect kinetic energy. The Contemporary Arts Museum Houston is exploring the art of dance photography with “Dance with Camera,” an exhibition of film, video and still photography that chronicles 70 years of capturing choreography. Selections span Busby Berkeley’s Hollywood musicals to contemporary avant-garde films. Opens August 7, Contemporary Arts Museum Houston, 5216 Montrose. 713-284-8250. Free.
38 | oPPortunity houston
Kelly nipper interval, 2000
Photos: contemPorary arts museum houston
There’s No Place Like Houston
BY DAY N A ST E E L E
AS I TRAVEL the country speaking, I have the opportunity not only to spread my business word but also to act as an ambassador for the great city of Houston and the region. Every chance I get, I sing the praises of my hometown. Many Fortune 500 companies already know what we know—Houston is a great place to live, work and run a company. So how do we go from #3 in Fortune 500 HQs to #1? As usual, several Houstonians have the answers. Houston needs to aggressively market its ”locational” attributes to the business leadership. A careful comparison should prompt forwardlooking companies to evaluate their exiting location. It’s about “where should our corporation be located in order to take advantage of the 21st-century environment that is being played out daily?”
ROBERT M. ADY
Texas Medical Center keeps us at the forefront of medicine and science. We are an international business and along with many large businesses, the region also supports more than 76,000 businesses with 100 or fewer employees. The Greater Houston Partnership’s Economic Development team has been named among the nation’s top 10 economic development groups by Site Selection magazine three times in the last 10 years. With all this, the Houston region remains remarkably affordable. Companies just need to know about us!
President Ady International Company Continuing to nurture the ideas of the entrepreneur seems key. Houston is rich in educational, cultural and economic resources. It is one of the few places that I have lived where I meet people every day who have turned their ideas into thriving businesses.
Executive Producer VISION Production Group Regional transportation alternatives, transit and accessibility from work to home will be critical in attracting Fortune 500 HQ companies in the future. Our area is diverse and growing economically, but we need to make sure that the folks who live here can easily get from one place to another, as they always have. Fortune 500 decision makers will be looking closely at quality-oflife issues such as this.
Manager of Suites Sales Houston Rockets and Toyota Center Houston supports a $416.6 billion gross area product. Houston is the leading domestic and international center for every segment of the energy industry. Our world-acclaimed
Transportation Planning and Outreach Program Manager Houston-Galveston Area Council
OPPORTUNITY HOUSTON | 39
Houston currently stands out as a great place to live. It is an international business city with a strong economy, friendly people and outstanding sports and cultural opportunities. To become the #1 city for Fortune 500 company headquarters, Houston must sustain and build on that excellence, making the city even more inviting to a company and its employees. One place where Houston could really improve is transportation. Looking to the future, viable public rail transportation will only become more important to those who view a city as a place to live and do business. A Fortune 500 company considering any city will want to know that its people can move economically and efﬁciently. In Houston, that requires rail options from outlying areas such as The Wood-
lands, the energy corridor, Sugar Land, and Kingwood to the center of the city and to the airports.
WILLIAM A. GAGE JR.
Partner Buck Keenan LLP Houston offers tremendous economic advantages for companies of all sizes. Our tax incentives are robust; we are free from union constraints; and a healthy sense of competition stems from the state’s right-to-work policy. We need to build on these strengths and get the word out.
Owner Stonehenge Productions, Inc. Houston enjoys a pro-growth business environment that has attracted a signiﬁcant migration of companies
from high-cost areas. This competitive advantage has resulted in the breadth and diversity that the city now enjoys across every major sector of the economy. These positives are combined with a relative high quality of life and a highly educated work force. The results speak for themselves in terms of wealth creation, quality employment and additional opportunities for those who are willing to work hard and pursue their dreams. The key will be to continue looking forward and to avoid regressing. The model has proven successful, and as we come out of the national recession, Houston is well positioned to beneﬁt even more from a global rebound that could result in our taking the lead in terms of large corporate and small business presence in all communities.
Managing Director–Houston Korn Ferry International To draw more Fortune 500 companies to Houston so that the city becomes #1 in the region, prospective companies have to be convinced that their investment in the community will be met by an educated work force to further their success. In order to meet this expectation, it is key for us, as educators, to prepare young people academically as well as to train them to think critically. It is also important that we help them develop integrity and a strong work ethic.
President Incarnate Word Academy We’ve got a good tax base, most reasonable housing, we are growing jobs—we just need to stay the course.
Chairman Taggart Financial Group Dayna Steele is a speaker, author, media consultant and native Houstonian. Follow her on Twitter @daynasteele or e-mail her at firstname.lastname@example.org.
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OF U.S. HOSPITALS.
RANKED AMONG THE
We’re ranked among America’s 50 Best Hospitals™ by HealthGrades® .
At Memorial Hermann, we believe it takes steadfast dedication to make breakthroughs come to life. That’s why we’re especially proud to be named one of America’s 50 Best Hospitals * by HealthGrades. We earned this distinction by demonstrating consistent, outstanding patient care and a deep commitment to clinical excellence across multiple specialties — which ensures better outcomes for our patients and a higher level of care for the community.
* As part of the Memorial Hermann Healthcare System: The Woodlands, Southeast, Southwest and Northwest Hospitals.
The University of Houston is an EEO/AA Institution.