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WIde open for BusIness

State develops cutting-edge video game segment

Game Changers Culture of Innovation

Bio breakthroughs born here

The Capital of Business
Texas draws investment from around the world
sponsored By The eConomIC developmenT & TourIsm dIv. offICe of The Governor | 2011



Game on
State scores big with video game development.

46 54 62 72 78 84 94

World of opportunity
Global business is spoken with a Texas accent.

air Current


Lone Star State is a wind innovator and leader.

Culture of Innovation
Texas is a catalyst for biomedical breakthroughs.

nothing but Blue skies
Aerospace and aviation give lift to the Texas economy.

a Gallery of Treasures
Texas assembles a top collection of museums.

a Growing appetite for Texas products
Agribusiness helps feed the state’s economy.
Table of Contents Continued on page 13


on The Cover The Texas state Capitol in austin
istockphoto / Ben BlankenBurg



Where Quality of Life Meets Opportunity


overview Business almanac Business Climate fortune 500 Companies energy 23 27 35 43 100 112 125 134 142 150 162 172 177 184

112 100


Technology Transportation health education livability Gallery economic development organizations economic profile Through the lens

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201 1 Edition , volum E 2 ProofrEading managEr RAven PeTTy ContEnt Coordinator JeSSicA WALkeR Staff WritEr kevin LiTWin CoPy Editor JiLL WyATT Contributing WritErS John FuLLeR, M.v. GReene, MeLAnie hiLL, heATheR JohnSTon JohnSon, kATie kuehneR-hebeRT, biLL LeWiS, Joe MoRRiS, beTSy WiLLiAMS mEdia tEChnology dirECtor chRiSTinA cARden SEnior graPhiC dESignErS LAuRA GALLAGheR, JeSSicA MAnneR, JAnine MARyLAnd, kRiS SexTon, vikki WiLLiAMS graPhiC dESignErS RAchAeL GeRRinGeR, TAyLoR nunLey mEdia tEChnology analyStS beccA ARy, chAndRA bRAdShAW, LAnce conzeTT PhotograPhy dirECtor JeFFRey S. oTTo SEnior PhotograPhErS JeFF AdkinS, bRiAn MccoRd Staff PhotograPhErS Todd benneTT, AnTony boShieR WEb ContEnt managEr John hood WEb ProjECt managEr noy FonGnALy WEb dESignEr ii RichARd STevenS WEb dEvEloPEr i yAMeL hALL WEb dEvEloPEr i neLS noSeWoRThy WEb aCCount managEr LAuRen eubAnk ad ProduCtion managEr kATie MiddendoRF ad traffiC aSSiStantS kRySTin LeMMon, PATRiciA MoiSAn i.t. dirECtor yAncey bond SyStEm adminiStrator/i.t. SuPPort tEChniCian dAnieL cAnTReLL SEnior aCCountant LiSA oWenS aCCountS PayablE Coordinator MARiA McFARLAnd aCCountS rECEivablE Coordinator diAnA GuzMAn offiCE managEr/aCCountS rECEivablE Coordinator SheLLy MiLLeR intEgratEd mEdia managErS bRyAnT GRAnThAM, PAuL TARRAnTS SalES SuPPort managEr cindy hALL Color imaging tEChniCian ALiSon hunTeR Chairman GReG ThuRMAn PrESidEnt/PubliShEr bob SchWARTzMAn ExECutivE viCE PrESidEnt RAy LAnGen SEnior v.P./SalES Todd PoTTeR, cARLA ThuRMAn SEnior v.P./oPErationS cASey heSTeR SEnior v.P./CliEnt dEvEloPmEnt JeFF heeFneR SEnior v.P./buSinESS dEvEloPmEnt ScoTT TeMPLeTon v.P./ExtErnal CommuniCationS TeRee cARuTheRS v.P./CuStom PubliShing kiM hoLMbeRG v.P./viSual ContEnt MARk FoReSTeR v.P./ContEnt oPErationS nATAShA LoRenS v.P./SalES chARLeS FiTzGibbon, heRb hARPeR, JARek SWekoSky ControllEr chRiS dudLey ContEnt dirECtor/travEl PubliCationS SuSAn chAPPeLL ContEnt dirECtor/buSinESS PubliCationS biLL McMeekin ContEnt dirECtor/livability.Com LiSA bATTLeS markEting CrEativE dirECtor keiTh hARRiS diStribution dirECtor GARy SMiTh ExECutivE SECrEtary kRiSTy duncAn human rESourCES managEr PeGGy bLAke rECEPtioniSt LindA biShoP

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dIGITal maGazIne >>

State develops cutting-edge video game segment

Game Changers Culture of Innovation

Bio breakthroughs born here

Find out what it’s like to live here and what makes the state such a special place to be.

The Capital of Business
Texas draws investment from around the world

Read the magazine on your computer, zoom in on articles, and link to advertiser websites. neWs and noTes >> our editors give you the inside Scoop on the latest development and trends in the area. suCCess Breeds suCCess >> Meet the people who set the pace for business innovation. dIG deeper >> Plug in to the state with links to local websites and resources to give you a big picture of the region. daTa CenTral >> A wealth of demographic and statistical information puts the region at your fingertips.

A spotlight on the region’s innovative companies.

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Digital Edition
Culture of Innovation
Texas is a catalyst for biomedical breakthroughs
Story by John Fuller


upported by a highly skilled workforce, world-class education and research institutions, and innovative funding programs, Texas has emerged as a global leader in the biotech and life sciences industry. Texas is home to more than 4,500 biotechnology; biomedical research; business and government consortia; medical manufacturing companies; and world-class universities and research facilities, which employ more than 108,600 workers at an average annual salary of over $74,800 and generate an economic impact of more than $75 billion annually. The biotechnology and life sciences sector is one of six industry clusters identified in 2004 by Gov. Rick Perry as part of his long-term, strategic job creation plan. The sector includes life science, nanohealth, biomedicine and pharmaceuticals, medical devices, agriculture and environmental biotechnology, and biofuels.

A majority of the top global biotech and pharmaceutical companies have locations in Texas, underscoring the state’s vitality in these industries. They include 2011 Fortune 500 companies Irving-based Kimberly Clark, Dallas-based Celanese, as well as Houston-based U.S. Oncology and San Antonio-based Kinetic Concepts. Texas’ outstanding public and private research institutions have made a major impact on the growth of biotech. Research spawns new products and industries, which in turn attract a highly skilled and talented workforce. One example is the Southwest Research Institute (SwRI) in San Antonio, which provides contract research and development services to private and public clients. At SwRI’s 2 million-square-foot headquarters complex, a staff of more than 3,000 conducts research on as many as 2,000 different projects across a range of

disciplines, including bioengineering and biomaterials. SwRI’s sister organization, the Texas Biomedical Research Institute includes 400 staffers, 85 of whom are doctoral-level scientists. It is home to nation’s only privately owned biosafety Level 4 laboratory, a maximum containment lab that allows for safe research on lethal pathogens for which there are no treatments or vaccines, including potential bio-terror agents and emerging diseases. The Institute’s AT&T Genomics Computing Center houses the world’s largest computer cluster for human genetic and genomic research. The facility allows scientists to search for disease-influencing genes at record speed. “What is most impressive in the San Antonio community is the spirit of collaboration that exists among the public and private research entities, businesses, hospitals, and academic

Research at the Texas A&M Institute for Genomic Medicine is accelerating the pace of medical breakthroughs. PHOTO BY JEFF ADKINS





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Texas Creates environment for Job Growth and opportunity
A letter from texAs Gov. rick Perry
As governor of Texas, i am dedicated to supporting an environment of job growth, opportunity, and prosperity for the people of the Lone Star State. Texas’ pro-business climate continues to bring quality jobs to the state. our state offers companies an unparalleled competitive edge, with the lowest per capita tax rates in the nation, no personal income tax, close proximity to strategic markets, cutting-edge infrastructure, excellent schools, and a skilled workforce. Texas provides businesses with the tools they need to grow and prosper, including the innovative, “deal-closing” Texas enterprise Fund (TeF) and the Texas emerging Technology Fund (TeTF). To date, the TeF has invested more than $435.3 million and closed the deal on projects generating 58,179 new jobs and more than $14.8 billion in capital investment in Texas. The TeTF has allocated more than $197 million in funds to 133 earlystage companies, and nearly $173 million in grant matching and research superiority funds to Texas universities. Texas is recognized around the world for our pro-business climate, which is demonstrated every day by statistics like these: • Texas was the winner of Site Selection magazine’s 2010 Site Selection Governor’s cup, awarded annually to the state with the most new and expanded corporate facilities. Texas claimed the prize on the strength of 424 projects, 48 more projects than the runner-up state. • Texas has been ranked as the top state for exporting for nine consecutive years. exports in 2010 reached $206.64 billion, up 26.7 percent from 2009. • Texas was the only state or province with two cities – houston and Austin - on fDi Magazine’s “Top 10 overall American cities of the Future (and north American cities of the Future) 2011/12” list. • Four Texas cities – Austin, dallas, San Antonio and houston – were included on Newsweek’s 2010 list of 10 cities best situated for economic recovery. The magazine described Texas as “the no. 1 destination for job-seeking Americans, thanks to a hearty energy sector and a strong spirit 385 of entrepreneurism.” DALLAM 87 Texas is a place of limitless SHERMAN possibility, and we will continue to 287 make every effort to ensure that business and industry thrive in our HARTLEY MOORE 54 great state. 87 i invite you to come to Texas, where we’re ready to work with you. no matter the industry, the Lone OLDHAM POTTER Star State is committed to doing Amarillo 40 what it takes to keep Texas Wide open for business. Sincerely,








Wichita Falls





Ft. Worth Dallas




El Paso



Tyler Waco
35 45





Austin San Antonio
37 35 10

Beaumont Houston

Port Arthur

Rick Perry Governor of Texas





For more information, contact:
COCHRAN Governor



Laredo McAllen

Corpus Christi

office of the economic development & Tourism division p.o. Box 12428 82 380 austin, Texas 78711 YOAKUM TERRY (512) 936-0100
62 180












10 reasons to live and Work in Texas
lone stAr stAte shines briGhtly As A PlAce to invest 1. Texas is where the world does business: The state is a leader in
and universities generated more than 7,600 patents in 2010. of the nation’s most respected medical programs and physicians. Fortune 500 corporate headquarters in the united States. Foreign-owned companies have invested more than $119 billion in Texas and employ more than 439,000 Texas workers. For nine consecutive years, Texas has been ranked as the top state for exporting. exports in 2010 amounted to $206.64 billion, a 26.7 percent increase from 2009.

7. Texas is one of the most affordable places to live: The

cost of living composite index for most metro areas in Texas is lower than the national composite index of 100.

8. Texas is a health-care leader:
The world comes to Texas for the latest innovations in medical treatment, technology, and expertise. The state’s 592 hospitals include more than 80,000 beds and some

includes 13 national parks, 120 state parks, 18 wildlife refuges, more than 900 golf courses, and 624 miles of Texas coastline.

9. Texas offers abundant outdoor recreation opportunities: The Lone Star State

10. It’s a great place to live: With

2. Texas has a powerhouse economy: The Texas gross state
product for 2010 was estimated at $1.29 trillion, making the Lone Star State the 13th-largest economy in the world if it were a stand-alone nation.

its beautiful landscape, warm weather, excellent schools, and Southern hospitality, Texas remains a popular choice for people looking to relocate.

3. It’s cheaper to do business:
Texas has one of the lowest tax burdens in the united States, including no personal income tax. Texas also has no state tax on property used for pollution control, on goods in transit, or on machinery and equipment utilized in manufacturing.

4. Texas invests in business:
The state offers a number of competitive incentive programs that help businesses grow, expand, and add jobs, including the Texas emerging Technology Fund (TeTF) and the Texas enterprise Fund (TeF), the largest “deal-closing” fund of its kind in the nation.

5. Texas has connections: With 13 deep-water ports, 14,982 miles of freight rail, 306,404 miles of public roads, 27 commercial airports, and 29 u.S. ports of entry, Texas offers superior transportation and logistical advantages. 6. It’s a state of innovation: The Lone Star State is home to many world-renowned higher education institutions, including The university of Texas, Texas A&M university, and Texas Tech university, that are centers of innovation. Texas colleges


Take TheIr Word for IT
Newsweek ranked four Texas cities – Austin, Dallas, San Antonio and Houston – on its 2010 list of “Top 10 American Cities Best Situated for Economic Recovery.” The top 10 were described as cities that have better withstood the economic slowdown and seem poised to emerge even stronger than before. Newsweek described Texas as “the No. 1 destination for jobseeking Americans, thanks to a hearty energy sector and a strong spirit of entrepreneurism.” “For sheer economic promise, no place beats Texas,” the magazine wrote. “Businesses have been flocking to Texas for a generation, and that trend is unlikely to slow soon.” The article noted that over the previous decade, Austin boasted the strongest job growth on its list, and that its private-sector growth has come from an expanding roster of homegrown and outside companies, including an increasing number of international companies such as Samsung, Nokia, Siemens, and Fujitsu.

hoW ‘BouT ThaT sTadIum?
The dallas cowboys have helped the nFL become an international brand and now the cowboys have a world-class facility to go along with their worldwide reputation. The $1.1 billion dallas cowboys Stadium in Arlington, the world’s largest domed football stadium, is an architectural marvel with a retractable roof supported by twin 292-foot arches, the longest single span roof structure in the world. The 86-foot-high canted glass exterior walls slope outward to create a luminescent glow, day or night. The stadium, host of Super bowl xLv, has 420,000 square feet of entertainment space and capacity to hold more than 100,000 people for events that include other sports, concerts, trade shows, corporate meetings, and consumer events. The highlight of the stadium is the center-hung hd screen. The 11,520- square-foot, two-sided display is the largest in the world, and each screen is made up of more than 10.5 million Leds.

all The rIGhT moves
For the sixth year in a row, Texas topped the list of states in the “43rd Annual Magnet States Report.” Texas had 1,640 more inbound moves than outbound moves, the highest net relocation gain in the survey performed by Allied van Lines, one of the world’s largest moving companies. The company noted the high number of Fortune 500 headquarters, healthy business climate, and family-friendly environment as contributing factors to the state’s success as the top destination.



JudGe Them By TheIr Covers
The next time you sit down for a restaurant meal don’t just look at what’s on the menu, be sure to look what the menu is on. victor cornelius inc. of eastland designs and manufactures handcrafted menu covers and executive-binder products used in hotels, resorts, and country clubs around the world. The company offers a wide selection of jacket materials and liners, many of which are used in high-end restaurants.

a hoT spoT for hoT spoTs
corpus christi earns praise as one of the nation’s top digital cities. corpus christi’s completion of a 147-square-mile multipurpose wireless broadband network gives it the single largest municipalscale wireless network anywhere in the world. The citywide Wi-Fi links water and gas utilities, public safety officers, public works department employees, and building inspectors to vital online information while they are in the field. citizens and visitors can sign onto the city’s internet site to pay utility bills and traffic tickets, apply for jobs, view real-time city council meetings and airline flight status data, check events calendars, and pinpoint lot-by-lot zoning or right-of-way easements via an interactive Geographic information System map.

a ThIrsT for InnovaTIon
in 2007, the world’s largest inland water desalination plant came online in el Paso. The $90 million facility has the capacity to produce 27.5 million gallons of potable water per day. A joint project between el Paso Water utilities and Fort bliss, the kay bailey hutchison desalination Plant increases el Paso Water utilities’ fresh water production by approximately 25 percent, based on current demand. The desalination plant produces fresh water by using reverse osmosis to obtain potable water from brackish water drawn from the hueco bolson Aquifer. Raw water from new and existing wells is pumped to the plant and filtered before being sent to reverse osmosis membranes. Through a pressurized process, raw water passes through fine membranes that separate salts and other contaminants from the water. About 83 percent of the water is recovered while the remainder is output as a concentrate. The facility includes the desalination plant, groundwater wells, transmission pipelines, storage and pumping facilities, and concentrate disposal.



GeorGe, aBe and mIllIons lIke Them
Want to be in the company of billions of dollars? Check out the U.S. Bureau of Engraving and Printing Western Currency Facility in Fort Worth. The facility includes two floors of interactive exhibits and displays, which showcase the history of currency and the intricacies of the printing process, as well as a high-definition theater film and the Moneyfactory Gift Shop. A 45-minute tour takes visitors along an enclosed elevated walkway suspended over the production floor, where they can see billions of dollars being printed as they walk.

peT frIendly
Leading pet specialty retailer PeTco Animal Supplies inc. is creating a satellite support center in San Antonio to perform a range of business support functions - a project that will create 400 jobs and $17 million in capital investment. A number of companies have picked San Antonio for support operations, in part because of its reasonably priced real estate, skilled labor pool, and a high quality of life. The PeTco project was aided by a $3.1 million investment through the Texas enterprise Fund (TeF). Texas lawmakers created the TeF in 2003 and re-appropriated funding in 2005, 2007, 2009, and 2011, to help ensure the growth of Texas business and create more jobs throughout the state.

BIG Wheels In sCooTers
national Scooter co., which designs, develops, manufactures, sells, and distributes a multi-line of bikes, scooters, motorcycles, and electric cars, has moved its world headquarters, previously sourced in china, to Pflugerville, Texas. A factor in the company’s decision was the city’s ability to offer Triple Freeport exemption, which gives businesses that assemble, process, manufacture, or store certain goods an exemption from paying county, school district, and city taxes if the goods are shipped out-of-state within 175 days. national Scooter is also creating a flagship store in Austin under the name Austin electric vehicles and is expected to bring more than 100 jobs to the area within three years.



real Texas sTars
The Texas Country Music Hall of Fame and The Tex Ritter Museum in Carthage opened in 1998 to celebrate the contributions of Texans to the country music genre. The 13,000-square-foot hall includes exhibits, a gift shop and a large banquet hall. Hall inductees include Bob Wills (Kosse), Gene Autry (Tioga), Dale Evans (Uvalde), Jim Reeves (Galloway), George Jones (Saratoga), and three of the four Highwaymen, Willie Nelson (Abbott), Waylon Jennings (Littlefield), and Kris Kristofferson (Brownsville).

saluTe These Top reTIremenT desTInaTIons
Texas is home to some of the nation’s largest military bases – including Fort hood, the largest installation in the united States – so it shouldn’t come as a surprise that it’s also an inviting place for military retirees. Financial services provider uSAA and teamed up to recognize the best places in the nation for armed forces personnel to reside after retirement. Waco topped the list, while Austin, bryan-college Station, and San Angelo also made the top 10. Reasonably priced housing, picturesque neighborhoods, and low unemployment, as well as the presence of a veterans Administration medical facility and proximity to military bases, were cited as contributing factors to Waco’s no. 1 ranking.

a hIGh-TeCh Cleanup Tool
A newly developed decontamination wipe invented by dr. Seshadri Ramkumar and developed at the institute of environmental and human health at Texas Tech university in Lubbock, has proven itself in cleaning up chemical warfare agents and toxic chemicals. now it has found new application for use in oil spill cleanups, such as the disaster in the Gulf of Mexico. Fibertect cotton-Soaking (cS), a three-layer, flexible, inert, nonwoven, non-particulate decontamination system, is manufactured by hobbs bonded Fibers for First Line Technology. The product’s top and bottom layers provide absorbency, while the center layer holds volatile compounds like oil fumes and toxic vapors. Product developers note that unlike synthetic materials currently used in many oil containment booms, Fibertect’s product is made from raw cotton and activated carbon and is relatively environmentally friendly. The environmental Protection Agency approved the patented product as a sorbent in May 2010.



Business Climate

playing a Winning hand
Diverse economy brings jobs, investment to texas
Story by M.V. Greene

y any measure, the Texas economy is on a roll. Despite a sluggish national economy, Texas continues to add jobs and attract new investments. Texas is home to 51 Fortune 500 corporate headquarters and is consistently at the top of a number of business rankings. In 2011, Texas once again won the prestigious Site Selection magazine 2010 Governor’s Cup for having the most new and expanded corporate facilities. “Texas is the best state in the nation to live, work, and do business thanks to our low taxes, reasonable and predictable regulatory climate, fair legal system, and skilled workforce,” says Texas Gov. Rick Perry. “These strong principles, paired with competitive incentives like the Texas Enterprise Fund (TEF) and Texas Emerging Technology Fund (TETF), have helped attract jobs and investment dollars to our state and top researchers to our universities. We work closely with local economic development partners to spread the word about Texas’ strong jobs climate and attract employers to our state that create jobs for Texans.” Texas’ gross state product (GSP) for fiscal year 2010 was estimated at $1.29 trillion, making Texas the 13th-largest economy in the world if it were a


PhoTo couRTeSy oF FRiTo-LAy

Frito-Lay is expanding its north American headquarters operations in Plano.

Cup ComeS to texaS sTaTe ClaIms presTIGIous aWard
Texas is the winner of Site Selection magazine’s 2010 Site Selection Governor’s cup announced in March 2011. The cup is awarded annually to the state with the most new and expanded corporate facilities. Texas claimed the prize on the strength of 424 projects, beating ohio (376 projects), Louisiana (347), Pennsylvania (337) and Georgia (251). Regarded as an “industry scoreboard,” Site Selection’s ranking focuses on new corporate location projects with a significant impact that involves a capital investment of at least $1 million and creation of at least 50 jobs, or at least 20,000 additional square feet of floor area.




Texas WIde open for BusIness

texaS at the top of the LiSt
No. 1 maGNet State in Allied van Lines’ 43rd Annual Magnet States Report, the sixth consecutive year the state has won the award Ranked the No. 1 State by Forbes in 2010 for Growth proSpeCtS, business openings/closings and venture capital investments Newsweek ranked four Texas cities – Austin, dallas, San Antonio, and houston – on its 2010 list of 10 CitieS beSt Situated for eCoNomiC reCovery, describing Texas as “the no. 1 destination for job-seeking Americans.” Six Texas metros - Austin, dallas, el Paso, houston, McAllen, and San Antonio - landed on the 20 StroNGeStperformiNG metro areaS in the brookings institute’s Tracking economic Recession and Recovery in America’s 100 Largest Metropolitan Areas quarterly report in June 2011 Texas is the No. 1 State iN export reveNueS for the ninth year in a row. in 2010 Texas export revenues totaled $206.64 billion, a 26.7 percent increase from 2009.

stand-alone nation. The state’s robust and diverse economy continues to draw new investment, breed innovation, and create new jobs in core industries such as computer and information technology; advanced technology and manufacturing; aerospace and defense; petroleum refining and chemical products; renewable energy; biotechnology and life sciences; and agriculture. Texas has continued its string of major business successes by playing off its advantage as a low-tax burden state. Low labor costs, a highly skilled workforce, major transportation assets, and state investment programs also contribute to the state’s success.
WInnInG BId for e-Bay Look no further than the state capital, where online auction giant eBay Inc. is adding 1,050 jobs at its Austin facilities. The $5 million investment will expand many of eBay’s business units in the capital city, including its PayPal e-commerce payment unit. The company cited a number of advantages to expanding in Austin, including the city’s legacy for technology innovation, as well as support from the city and state. eBay received a $2.8 million TEF investment for the project. Samsung is investing $3.6 billion in a vast expansion of its semiconductor fabrication plant in Austin, Samsung’s

only semiconductor manufacturing facility outside Korea. The expansion will add 500 new jobs to the company’s 1,000-person workforce, and the facility’s payroll is projected to grow from $70 million to $105 million. Pet specialty retailer PETCO Animal Supplies Inc. announced it was creating a satellite center in San Antonio to perform business and administrative support functions that include accounting, human resources, and risk

management. The project will bring 400 high-paying jobs over three years to the region and $17 million in capital investment. The state helped lure the PETCO project by awarding the company a $3.1 million TEF investment. Kohl’s Department Stores Inc. received a $750,000 TEF investment to create a customer operations center in San Antonio that could eventually generate more than 1,000 jobs and $18 million in capital investment.

texaS GroSS State produCt (In TrIllIons of dollars)

1.5 1.4 1.3 1.2 1.1 1.0 2006 2007 2008 2009 2010

Snack food producer Frito-Lay North America was awarded a $1.125 million TEF investment to help implement companywide business management software and other IT upgrades that created 125 jobs at the company’s operations in Plano and generated more than $50 million in business infrastructure. Klein Tools received a $2.8 million TEF investment to bring multiple operations to a new facility in Mansfield, where its $18 million capital investment is expected to create 585 jobs. Klein Tools makes hand tools used in construction, electronics, mining, general industry, and telecommunications. The company also has a line of occupational protective equipment. The Mansfield facility will serve as the company’s Advanced Manufacturing Technology

Center, focusing on the research and development of cutting-edge manufacturing processes.
Texas adds people, JoBs As it did for eight previous years, Texas led all states in export volumes in 2010, sending $206.64 billion in computers, chemicals, petroleum, and other products around the world. Texas’ powerhouse economy is gaining national notice. Newsweek magazine named Austin, Dallas, San Antonio, and Houston to its 2010 list of 10 U.S. cities that have best withstood the rigors of the economic slowdown and are positioned to emerge even stronger. Forbes ranked the state No. 1 for growth prospects, measuring projected job, income, and GSP growth. The ranking also gauges a

state’s new business creation, ability to keep existing companies open, and venture capital investment. U.S. Census data show Texas as the fourth fastest-growing state in the last 10 years, adding 4.3 million residents, a 20.6 percent increase, over the past decade. During that same period the U.S. population growth rate was 9.7 percent. Houston ranks No. 4, San Antonio No. 7, and Dallas No. 9 among the most-populous U.S. cities. “In Texas, we’ve worked hard to foster an environment where individuals can risk their capital and receive a good return on their investment,” Gov. Perry says. “Our commitment to the sound economic principles that are the driving forces behind our economy has helped keep Texas’ economic engine moving.”

Job JuGGerNaut
u.S. bureau of Labor Statistics data show that of the top 10 states for job growth from January 2010 to January 2011, Texas created more jobs than california, new york, Pennsylvania, and Tennessee combined.

miChiGaN: 68,500

New york: 54,700

4 2
iLLiNoiS: 64,200 CaLiforNia: 89,400 iNdiaNa: 30,700 ohio: 57,000

7 3




virGiNia: 30,200

teNNeSSee: 31,500


texaS: 253,900



a helping hand to stimulate Investment
texAs incentive ProGrAms Promote business exPAnsion
The Texas emerging Technology Fund (TeTF): The TeTF was created by the Texas Legislature in 2005 at the urging of Gov. Rick Perry to promote research, development, and commercialization of emerging technologies. TeTF grants are awarded in three areas: • Research Superiority Acquisition: Funds for Texas higher education institutions to recruit the best research talent in the world. • commercialization Awards: Funds to help companies take ideas from concept to development to ready for the marketplace. • Matching Awards: Funds to create public-private partnerships that leverage the unique strengths of universities, federal government grant programs, and industry. Priority is given to emerging technology projects that will enhance Texas’ global competitiveness that are collaborative and leverage both critical expertise and financial resources. The TeTF has allocated more than $197 million in funds to 133 early-stage companies, and $173 million in grant matching and research superiority funds to Texas universities. Texas enterprise Fund (TeF): The TeF is the largest “dealclosing” fund of its kind in the nation, and is used only as a final incentive tool where a single Texas site is competing with another viable out-of-state option. TeF is only considered to help close a deal that already has significant local support behind it from a prospective Texas community. Projects must demonstrate a significant rate of return on the public dollars being invested and meet several criteria to be considered for an award, including: • competition with another state for the project must exist and the business must not have already announced a location decision. • Projected new job creation must be significant and the new positions must be high-paying jobs – above the average wage of the location county for the project. • The project must have community involvement from the city, county, and/or school district, primarily in the form of local economic incentive offers. • The applicant’s business sector must be an advanced industry that could potentially locate in another state or country. To date, TeF has invested more than $435.3 million and closed on projects generating 58,179 new jobs and more than $14.8 billion in capital investment in Texas.



Fortune 500

Where Big Companies Gather
texas Fortune 500 headquarters
exas flexes its economic muscle in many ways. With a gross state product of $1.29 trillion, Texas would rank as the world’s 13th-largest economy were it a standalone nation. Texas has led all states in exports for nine consecutive years, nearly $207 billion in 2010 alone. Another sign of Texas’ economic clout is the cluster of major companies that are based in the Lone Star State. For several years, Texas has been a leader among states in headquarters for Fortune 500 companies, according to Fortune magazine rankings. In 2011, two of the 10 largest publicly traded companies in the United States and 51 companies in total on the Fortune 500 were based in Texas. Here are the top 15 Texas companies:
1. exxonmoBIl fortune 500 rank: 2 2010 revenues:$354.7 billion Location: Irving industry category: Petroleum Refining 2. ConoCophIllIps fortune 500 rank: 4 2010 revenues: $185 billion Location: Houston industry category: Petroleum Refining 3. aT&T fortune 500 rank: 12 2010 revenues: $124.6 billion Location: Dallas industry category: Telecommunications


4. valero enerGy fortune 500 rank: 24 2010 revenues: $86 billion Location: San Antonio industry category: Petroleum Refining 5. maraThon oIl fortune 500 rank: 29 2010 revenues: $68.5 billion Location: Houston industry category: Petroleum Refining 6. dell fortune 500 rank: 41 2010 revenues: $61.4 billion Location: Round Rock industry category: Computers: Office Equipment 7. sysCo fortune 500 rank: 67 2010 revenues: $37.2 billion Location: Houston industry category: Wholesalers: Food & Grocery 8. enTerprIse Gp holdInGs fortune 500 rank: 80 2010 revenues: $33.7 billion Location: Houston industry category: Pipelines 9. plaIns all amerICan pIpelIne fortune 500 rank: 99 2010 revenues: $25.9 billion Location: Houston industry category: Pipelines

10. amr (amerICan aIrlInes) fortune 500 rank: 118 2010 revenues: $25.9 billion Location: Fort Worth industry category: Airlines 11. fluor fortune 500 rank: 124 2010 revenues: $20.8 billion Location: Irving industry category: Engineering, Construction 12. Tesoro fortune 500 rank: 128 2010 revenues: $20.3 billion Location: San Antonio industry Category: Petroleum Refining 13. kImBerly Clark fortune 500 rank: 130 2010 revenues: $19.7 billion Location: Irving industry category: Household & Personal Products 14. hallIBurTon fortune 500 rank: 144 2010 revenues: $18 billion Location: Houston industry category: Oil & Gas Equipment, Services 15. unITed servICes auTomoBIle assoCIaTIon fortune 500 rank: 145 2010 revenues: $17.9 billion Location: San Antonio industry category: Insurance: Property & Casualty



Texas WIde open for BusIness




Texas WIde open for BusIness

Game on
texas creates major hub for video game development
Story by Betsy Williams Photography by Brian McCord


exas was an early – and strategic player – in the video game industry. Today some 135 video game development and publishing companies have offices throughout the state. With more than 3,700 full-time jobs, Texas has the second-largest concentration of game development in the nation, an industry expected to spend more than $177 million in Texas this year alone. “Texas has a rich history as a hub for hot video game development talent,” says Paul Bettner, co-founder and former CEO of Newtoy and now general manager of Zynga With Friends. Some of the most popular and

left: bioWare has a studio in Austin, where employees are working on a new multiplayer online game. right: Gearbox Software in Plano is an award-winning independent developer of video games that works with such prominent franchises as Halo.


Gearbox Software works with franchises such as halo, Aliens, Tony hawk, James bond, and Samba de Amigo, and has also created successful new franchises with brothers in Arms and borderlands.

NumberS to prove it Texas vIdeo Game IndusTry Is GroWInG

2011 2008

2008: 94 game development companies employing 2,824 video game developers

2011: 135 game development companies employing 3,765 video game developers

groundbreaking games have been made in Texas. Bettner’s Newtoy developed Words With Friends, one of the top mobile game apps in the world. California-based Zynga, best known for its wildly popular FarmVille and CityVille Facebook games, purchased Newtoy in late 2010. The Newtoy headquarters in McKinney, Texas, has become the Zynga With Friends Studio, a new game studio that leverages the popular franchise and builds new games for Zynga. From the late 1980s, when Origin Systems launched the Ultima game series, Texas has seen growth with every innovation in the video game industry. When Apple opened the gates for iPhone apps, studios in Texas


“video game design firms and publishers are already ensconced in the culture here …”
moved to fill that demand. Today, many social media-based games are created by Texas firms, and 10-15 percent of Texas game developers are creating serious games for educational, military, medical, and even governmental purposes. In Plano, 12-year-old Gearbox Software made its debut with HalfLife: Opposing Force and went on to work with such prominent franchises as Halo, Aliens, Tony Hawk, James Bond, and Samba de Amigo. Gearbox is the creative force behind highly popular game franchises Brothers in Arms and Borderlands, and it acquired the well known Duke Nukem brand. In Austin, BioWare’s studio is at work on Star Wars: The Old Republic, its multi-player online game that has garnered a number of national awards. The company develops character- and story-based role-playing games for console, PC, and online play.
suCCess Breeds suCCess “Video game design firms and publishers are already ensconced in the culture here, so when people in those companies want to break out and pursue their own ideas, they want to stay in a place where the support and resources are available,” says Evan Fitzmaurice, director of the Texas Film Commission. “We’ve seen that happen here.” Bettner says the high concentration of talent in the area “gives us a rich employee pool to draw from.” Texas

universities and institutions are also contributing to that pool. The Guildhall at Southern Methodist University in Plano is the premier video game education graduate program in the country. Meanwhile, Texas A&M University, The University of Texas at Austin, and other state universities are sending talented new graduates into the video game job market. The game industry does well in Texas for the same reasons the state is doing so well in other industries – low tax structure, a predictable regulatory climate, and friendly orientation toward business, Fitzmaurice says. The Lone Star State also has developed growing clusters of companies engaged in such enterprises as animation and social media. Social media giant Facebook opened an office in Austin in 2010, its first outside California. The Austin office could eventually employ 200 people involved in everything from user and developer operations to sales.

Facebook joins a growing list of social media-related development companies taking root in the Texas state capital, including Bazaarvoice Inc., Spredfast Inc., and Socialware. Bazaarvoice helps businesses capture, display, share, and analyze customer conversations online, Spredfast helps companies with social media management, and Socialware is the standard for social business management in financial services industries. More than 55 animation and visual effects companies also operate in Texas. The History Channel’s new animation and live-action hybrid show Jurassic Fight Club was created at San Antonio’s 1080 Entertainment, and Sony Picture Animation’s Open Season 2 was produced at Reel FX Studios in Dallas.
Texas CreaTes InCenTIves Texas has paid special attention to this expanding market. Under Gov. Rick Perry’s leadership, the Texas Moving Image Industry Incentive Program was created for film, television, video games, and commercials. The Texas Legislature established the program in 2007 with $20 million in funding, and increased funding to $60 million in 2009. “There are a multitude of factors that make Texas appealing to potential recruits – great housing prices, no state income tax, and a unique Southern charm,” Bettner says. “The latter, in particular, is something we definitely play up at our studio – with our unique office space in a 100-yearold converted cotton mill in the historic downtown McKinney area. When new recruits come to tour our offices, they can immediately tell that we’ve got something special going on.” And so does Texas.

Gearbox Software in Plano has worked on such franchises as Aliens and Tony Hawk.


a World of opportunity
texas speaks business with a global accent
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toyota motor manufacturing, based in japan, has invested more than $1.4 billion in its San antonio plant.



Story by Bill Lewis Photography by Brian McCord

exas is a leader in attracting foreign direct investments (FDI) and exporting products around the world. The state’s economy stretches across oceans and continents, creating jobs and opportunities here at home. For nine consecutive years, Texas has led the U.S. as the top state for exports. In 2010, Texas exports totaled $206.64 billion, a 26.7 percent increase


from 2009. Texas also outpaced growth in overall U.S. exports during that period, which grew by about 21 percent.
GloBal markeTplaCe Richardson-based Nitro 9 Products uses Texas-produced petroleum products to develop lubricants and fuel additive products. The company exports its products to 16 countries

texaS top export marketS 2010
Mexico canada china brazil South korea $72.4 billion $18.8 billion $10.3 billion $7.2 billion $6.4 billion
more aT TexaseConomICdevelopmenTGuIde.Com Source: U.S. Census Bureau

and is looking at new target markets including Nigeria, Ghana, and the Philippines. “I’m bringing back American dollars from Vietnam and Cambodia. A lot of my sales are in Asia,” says A.J. Wichita, Nitro 9 founder and CEO. Nitro 9 is also developing products for the British market. The company, which employs 20 people in Texas, is working on a product that would reduce coal emissions in China, a potentially huge market, says Wichita. Wichita says Texas is an attractive place for any company to do business. “The state of Texas is blessed with a lot of opportunity,” he says. In Powderly, Ansr Audio exports the high-quality earphones and audio equipment it makes to England, Sweden, Oman, and South Africa and is seeking new markets. “There’s a big world out there,” John Clay, president of the five-person

company says of the potential market for his new headset with a built-in transmitter, which should appeal to active wearers in the health club industry. “The world’s largest fitness center is in Europe. And I’d like to get into Russia,” says Clay. Millions of people have seen his products, but they might not know it. “SeaWorld, where the guy rides on the back of the killer whale and talks to the audience, he’s using my stuff,” he says.
exporTInG suCCess Houston-based Swiff-Train Company/EarthWerks, was named a 2011 Exporter of the Year by ThinkGlobal Inc., publisher of Commercial News USA, the official export promotion magazine of the U.S. Department of Commerce. The company sells EarthWerks luxury vinyl tile, vinyl plank, and

hardwood flooring across the United States, as well as to customers in more than 40 countries. The company’s warehouse in Belgium supports the European market. “Our father, who was originally a global trader of steel and wire products, told my brothers L.A., Jeff, and me that if we ever wanted to grow our business, we needed to look outside the box and outside our borders,” says Kenny Train, executive vice president of sales and marketing. “As the world becomes more and more global in business, we at SwiffTrain are making the investment and working hard to be a part of it,” Train says. As Texas companies seek overseas markets, foreign companies are investing in Texas. Texas leads the nation in FDI, according to a report by consulting firm fDi Intelligence.

17% 39% 10% 10% 7% 8% 9%

foreIGn dIreCT InvesTmenT In Texas By CounTry (2007) 17%, united kingdom, $20.0 billion 10%, Germany, $12.4 billion 10%, France, $11.5 billion 9%, Japan, $10.5 billion 8%, netherlands, $9.3 billion 7%, canada, $8.7 billion 39%, Rest of the world, $46.6 billion total investment: $119.3 billion Source: U.S. Bureau of Economic Analysis

fdI means JoBs Tianjin Pipe is building a 1.6 million-square-foot plant in the Coastal Texas region. The $1 billion facility near Corpus Christi will be the largest new manufacturing investment that a Chinese company has ever made in the United States. The company cited a number of factors in its decision, including strategic geographic location, convenient access to the Port of Corpus Christi for incoming raw materials and outgoing products, availability of power and other utilities, and a work-ready labor force. Toyota has invested more than $1.6 billion in its San Antonio plant, which employs more than 4,000 people, including 1,000 recently hired with the Tacoma truck line addition. Samsung is undertaking a $3.6
Clockwise from top left: Samsung is investing $3.6 billion in a vast expansion of its semiconductor plant in Austin; Toyota’s San Antonio plant employs more than 2,800 people; Ansr Audio in Powderly makes high-quality earphones and audio equipment, and exports all over the world.


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billion expansion of its Austin semiconductor plant, its only such plant outside Korea. In Plano, Shanghai-based Huawei Technologies announced an expansion of its North American headquarters in fall 2010. The company, which provides telecommunications solutions to companies around the word, employs nearly 600 in Plano. And Jyoti Americas will create a state-of-the-art U.S. manufacturing facility for high voltage transmission lines in Conroe, near Houston. This investment will create 157 jobs and generate an estimated $34 million in capital investment. At latest count by the Organization for International Investment, Texas ranks second in the nation for the number of jobs at U.S. subsidiaries of global companies. Subsidiaries play a vital role in the Texas economy, insourcing 439,400 jobs - an increase of 24.5 percent over six years. Forbes Global 500 companies insourcing jobs to Texas include Japan’s Toyota Motor Manufacturing, Sweden-based IKEA, South Korea’s Samsung, the Netherlands’ Royal Dutch Shell Group, and Germany’s BASF.
huawei Technologies expanded its north American headquarters in Plano, where it employs nearly 600 people.

top fdi empLoymeNt SeCtorS In Thousands of employees (2008)

manufacturing other sectors wholesale trade science/technology & professional finance and insurance information retail real estate-related 2.5 0 50 100 150 17.4 14.0 13.6 32.4 65.1 138.1




air Current
texas is a wind energy innovator and leader
Story by Bill Lewis Photography by Brian McCord


wiNd eNerGy CapaCity by State – JuNe 2011
Washington 2,356 mW Texas 10,135 mW

merica’s energy future is taking shape in Texas, and it looks like a wind turbine. Texas is renowned for its oil and gas industry, which along with abundant coal continues to supply the country with dependable energy. But the Lone Star State also leads the country, and most of the world, in wind capacity, which brings clean, renewable power to homes, businesses, and schools and creates jobs across the state. For the last six years Texas has led the nation in installed wind capacity. As of June 2011, the state’s wind power capacity was 10,135 megawatts, according to the American Wind Energy Association. If Texas were a nation it would rank sixth in wind

minnesota 2,432 mW

California 3,179 mW
Source: American Wind Energy Association

Iowa 3,675 mW


Texas WIde open for BusIness




Texas WIde open for BusIness

power capacity behind China, the rest of the United States, Germany, Spain, and India.
a favoraBle reGulaTory envIronmenT Being a leader in wind technology comes naturally for Texas, given the state’s long experience with the energy industry, says David L. Miller, vice chancellor for technology commercialization and research at the Texas Tech University System. “Texas isn’t a leader in wind because oil is bad, because gas is bad, or because coal is bad,” Miller says. “Texas is a leader in renewable energy because we had the regulatory environment and the transmission infrastructure in place.” Today, Texas is home to the world’s two largest wind farms, the Roscoe Wind Farm west of Dallas (781 MW),

Students create a windmill that will be used at a local Texas high school.

texaS wiNd eNerGy faCtS

percentage of Texas power provided by wind in 2009

2.7 million
equivalent number of homes Texas wind farms now power

Texas’ u.s. wind capacity ranking

Wind energy capacity in Texas in June 2011 in megawatts


Clockwise from top left: Massive wind turbines await assembly in Texas; Martifer energy Systems, a Portuguese company, is locating its north American wind energy headquarters in San Angelo; Texas Gov. Rick Perry has committed $8.4 million in the Texas Tech university System to focus on wind power research.

which produces enough electricity to power 230,000 homes, and Horse Hollow Wind Energy Center near Sweetwater (735.5 MW). In fact, five of the nation’s 10 largest wind farms are in Texas – Roscoe, Horse Hollow, Capricorn Ridge Wind Farm (662.5 MW), Sweetwater Wind Farm (585 MW), and Buffalo Gap Wind Farm (524 MW).
BenefITs from offshore oIl, Gas More wind power is on the way, including the nation’s first permitted offshore wind turbine unit. The Coastal Point 300 MW offshore wind project near Galveston, which represents a $720 million investment, capitalizes on the company’s long association with the offshore oil and gas industry. The project’s Gulf Coast location allows Coastal Point to capitalize on the platform construction industry already in place to build its offshore


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S TA F F P h o T o



LarGeSt wiNd farmS iN the NatioN

CapriCorN ridGe wiNd farm

663 MW, Texas

fowLer ridGe wiNd farm

600 MW, indiana 585 MW, Texas

meadow Lake wiNd farm

roSCoe wiNd farm aLtamoNt paSS wiNd farm

500 MW, indiana

781 MW, Texas

Sweetwater wiNd farm

576 MW, California

SaN GorGoNio paSS wiNd farm

buffaLo Gap wiNd farm

619 MW, California

524 MW, Texas

tehaChapi paSS wiNd farm

690 MW, California

horSe hoLLow wiNd eNerGy CeNter

736 MW, Texas

HendeRson economic All RoAds leAd to HendeRson
For more information, contact: Sue Henderson (903) 657-9146

wind towers. The wind industry does more than create power, it creates jobs. In May 2010, Alstom announced a new wind turbine manufacturing facility in Amarillo. Once operational, the plant will produce wind turbine nacelles, which include the generator, gearbox, and control system that convert the rotational motion of the blades into energy. The 115,000-square-foot facility is expected to create 275 fulltime engineering, production, and technical support jobs. In San Angelo, Martifer-Hirschfeld Energy Systems LLC will initially hire about 125 new workers to staff its wind tower production plant. This joint venture brings together

the wind power component manufacturing expertise of Portugalbased Martifer Group and the local infrastructure fabrication experience of San Angelo-based Hirschfeld Industries. “We have reached an important milestone with the award of orders from multiple global wind turbine manufacturers,” says Richard Phillips, president of Hirschfeld Industries. “And we are pleased to bring the combination of proven European norms and production capabilities to the U.S. wind energy market.”
puBlIC-prIvaTe parTnershIps The wind industry is also being nurtured by public-private partnerships such as the National

Institute for Renewable Energy (NIRE), formed by the Texas Tech University System and the Innovate Texas Foundation, to solve key scientific challenges facing the industry. One of NIRE’s partners is the National Wind Research Center at Texas Tech University. Gov. Rick Perry committed $8.4 million in research superiority investment funding through the Texas Emerging Technology fund and private businesses have provided substantial funding. “We need all the energy we can get, and wind will play a large role. The more energy we produce from domestic sources, the more secure our nation is,” Miller says.

development coRpoRAtion
… A Texas Main Street City in Rusk County, with a network of highways radiating from Henderson makes it one of the most important highway centers in the East Texas Region.

A City on the “GROW!”

Land Available Now!
(will trade property for jobs)

Job Creation Incentives

Tax Abatements
(both city and county)

Competitive Low Electrical Rates

Low Taxes Railroad Access

radiant With opportunity
texAs Powers uP on solAr AnD biomAss
When representatives of RRe Austin Solar say the sun shines hot in Texas, they don’t mean the temperature outside. They’re talking about the state’s fast-growing solar power industry and their company’s ability to turn sunlight into electricity. RRe will operate one of the nation’s largest solar farms in Travis county, 15 miles east of Pflugerville, that should be complete by the end of the year. The 60 MW solar farm covers 728 acres and contains more than 400,000 solar panels. “This has been a dream for us,” says daven Mahta, ceo of RRe Austin Solar. Pflugerville’s mayor, Jeff coleman says the city was looking for a source of clean, sustainable power, and solar energy fit that goal perfectly. “Pflugervillians, like most central Texans, have a high degree of concern about the environment and we are honored that Pflugerville was selected as the site for the largest solar farm in the nation,” he says. Texas offers franchise tax exemptions to solar energy device manufacturers, sellers, and installers. The state also offers business owner and property tax deductions, as well as corporate economic development credits for renewable energy-related activities. As of mid-2009, more than 50 percent of Texas electric customers had access to a photovoltaic incentive program through their utility company. A 2010 u.S. department of energy study ranked Texas as one of the top seven southwestern states for concentrating Solar Power. West Texas alone is estimated to have enough potential solar capacity to generate up to 149 MW hours of electricity. The solar energy on a single acre of land in West Texas is capable of producing the energy equivalent of 800 barrels of oil each year. Texas’ abundance of sunlight creates another energy resource in Texas: biomass fuels. Leftover plant and animal materials from farms, and even yard waste from urban areas, become a valuable source of energy. For example, the state’s major agricultural residue, cotton gin trash, along with leftovers like rice and cottonseed hulls and the fibrous residue from sugarcane, are being converted into fuel. Additional resources include manure from the state’s large cattle industry, and waste generated by the forest products industry. – Bill Lewis

The solar energy on a single acre of land in West Texas is capable of producing the energy equivalent of 800 barrels of oil each year.



Culture of Innovation
texas is a catalyst for biomedical breakthroughs
Story by John Fuller


upported by a highly skilled workforce, world-class education and research institutions, and innovative funding programs, Texas has emerged as a global leader in the biotech and life sciences industry. Texas is home to more than 4,500 biotechnology; biomedical research; business and government consortia; medical manufacturing companies; and world-class universities and research facilities, which employ more than 108,600 workers at an average annual salary of over $74,800 and generate an economic impact of more than $75 billion annually. The biotechnology and life sciences sector is one of six industry clusters identified in 2004 by Gov. Rick Perry as part of his long-term, strategic job creation plan. The sector includes life science, nanohealth, biomedicine and pharmaceuticals, medical devices, agriculture and environmental biotechnology, and biofuels.

A majority of the top global biotech and pharmaceutical companies have locations in Texas, underscoring the state’s vitality in these industries. They include 2011 Fortune 500 companies Irving-based Kimberly Clark, Dallas-based Celanese, as well as Houston-based U.S. Oncology and San Antonio-based Kinetic Concepts. Texas’ outstanding public and private research institutions have made a major impact on the growth of biotech. Research spawns new products and industries, which in turn attract a highly skilled and talented workforce. One example is the Southwest Research Institute (SwRI) in San Antonio, which provides contract research and development services to private and public clients. At SwRI’s 2 million-square-foot headquarters complex, a staff of more than 3,000 conducts research on as many as 2,000 different projects across a range of

disciplines, including bioengineering and biomaterials. SwRI’s sister organization, the Texas Biomedical Research Institute includes 400 staffers, 85 of whom are doctoral-level scientists. It is home to nation’s only privately owned biosafety Level 4 laboratory, a maximum containment lab that allows for safe research on lethal pathogens for which there are no treatments or vaccines, including potential bio-terror agents and emerging diseases. The Institute’s AT&T Genomics Computing Center houses the world’s largest computer cluster for human genetic and genomic research. The facility allows scientists to search for disease-influencing genes at record speed. “What is most impressive in the San Antonio community is the spirit of collaboration that exists among the public and private research entities, businesses, hospitals, and academic

Research at the Texas A&M institute for Genomic Medicine is accelerating the pace of medical breakthroughs. PhoTo by JeFF AdkinS


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bRiAn MccoRd

Texas WIde open for BusIness

institutions. I find this totally refreshing,” says Kenneth P. Trevett, president and CEO of the Texas Biomedical Research Institute. Total academic bioscience research and development in Texas exceeds $2.5 billion annually. One of the state’s leading research universities, Texas A&M is home to such renowned institutions as the Texas A&M Institute for Genomic Medicine and the Texas Institute for Preclinical Studies. The latter institute trains veterinarians, physicians, scientists, technicians, and engineers to accelerate research, development, and commercialization of breakthrough biomedical technologies.
fuelInG BIoTeCh GroWTh Capital is the feedstock that spurs research and Texas has responded with innovative public-funded programs to encourage biotech breakthroughs and job growth. The Texas Emerging Technology Fund (TETF) supports high-tech startup companies, many of which are biotech firms. Over its short history, the TETF has allocated more than $197 million for nearly 133 early-stage companies, as well as $173 million in grant-matching and research and development funds to Texas universities. “We understand that high-tech companies don’t just happen overnight but are a product of forethought, sound vision and planning, and strategic investments by both the public and private sectors,” says Gov. Perry. “Through the Texas Emerging Technology Fund we are bringing the best scientists and researchers to Texas, attracting high-tech jobs, and helping start-up companies get off the ground faster.” The Texas Enterprise Fund (TEF), the largest “deal-closing” fund of its kind in the nation, provides critical funding for selected economic development projects, including

the texas biomedical research institute conducts ground-breaking research in such areas as genetics, virology and immunology.



Texas WIde open for BusIness

The Texas biomedical Research institute in San Antonio employs 400 staffers, 85 of whom are doctoral-level scientists.

$97.6 million to date for biotechrelated projects. Private funding is important as well. Total venture capital invested in Texas bioscience companies during the last eight years totaled more than $2.2 billion.
BraIn poWer for The laBs One of every 19 U.S. biotechnology employees works in Texas, and many of the leading biotechnology companies in the world are either based in Texas or have major operations here. In addition, Texas has some of the leading medical facilities and related educational centers in the nation, such as the Dallas-based Baylor Health Care System and Temple-based Scott & White Healthcare. Texas Medical Center in Houston, the world’s largest medical complex, is comprised of 49 member institutions, including 21 academic institutions, 14 hospitals, six nursing schools, and three medical schools. Member institute and U.S. News Best Hospital: Cancer honoree, the world-renowned University of

Texas M.D. Anderson Cancer Center is devoted exclusively to cancer patient care, research, education, and prevention, investing more than $547 million annually in research. Texas has 11 biotechnology scientists and researchers who are Nobel laureates or major national science award winners. The University of Texas Southwestern Medical Center in Dallas has four Nobel laureates on its faculty – the most of any medical school in the world. State higher education institutions annually grant degrees to more than 10,500 students in bioscience-related fields. The collection of expertise and a collaborative environment are key reasons that companies such as Vermillion Inc. are making the move to Texas. The company researches, develops, and commercializes highvalue diagnostic tests that help physicians diagnose, treat, and improve outcomes for patients in areas such as oncology, hematology, cardiology, and women’s health. In fall 2010, the company relocated its corporate headquarters from

California to Austin. “When you look to relocate, certainly financial factors are important, but we have been pleasantly surprised at all of the help we’ve received from the people of Texas,” says Gail S. Page, Vermillion president and CEO. “So many people and organizations have helped us as we are growing.” Page says the move to Texas has also given her firm more recruiting leverage, helping Vermillion attract the skilled professionals it needs to successfully grow the business.
a leader In CanCer researCh Finding a cure for cancer is important to Texans. In June 2007 Gov. Rick Perry signed legislation creating the Cancer Prevention and Research Initiative of Texas (CPRIT). That fall Texas voters approved a 10-year, $3 billion bond proposition to fund cancer prevention and research in Texas. CPRIT issued its initial grant in December 2009 and has since issued more than 255 grants totaling $382.3 million.

bRiAn MccoRd


the f-35b short takeoff and vertical landing (Stovl) fighters are manufactured by lockheed martin in fort Worth.


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nothing but Blue skies
Aerospace and aviation give lift to texas economy
PhoTo couRTeSy oF Lockheed MARTin




Texas WIde open for BusIness

Story by Heather Johnston Johnson

rom biplanes to moonwalks, Texas has a played a significant role in U.S. aviation history. Access to a well-educated labor pool and a stable of military installations, where transitioning skilled military personnel are entering the workforce, combined with a network of local suppliers, keeps aerospace and defense-related companies growing in the state, names that include Lockheed Martin, Bell Helicopters, Raytheon, Boeing, and L-3 Communications.
skIlled WorkforCe BoosTs Texas aerospaCe Texas is home to Fortune 500 company Lockheed Martin’s largest branch in the country and is the largest defense company in Texas. Nearly 20,000 of Lockheed Martin’s employees are in Texas or about one in seven of its global workforce. The Fort Worth/Dallas Area Aeronautics division builds fighter jets such as the F-16 and the F-35. The F-35 is the largest defense program in U.S. history and is projected to have a lifespan of 50 years. Lockheed Martin is still building the F-16, a project that began in 1975 and is expected to be in production another 10 years. Many of Lockheed Martin’s workers are retired military personnel who bring highlevel experience and knowledge to their jobs. Joe Stout, Lockheed Martin spokesman, says Texas’ quality higher education institutions provide excellent programs for company employees. “Our industry draws heavily on the educational resources here,” Stout says. Schools such as The University of Texas at Austin, Texas A&M University, and the University of Texas-Arlington provide advanced degrees in aerospace and engineering and give employees the chance to take


advantage of the company’s financial support for continuing education. Twenty colleges and universities in the state – and 36 high schools – offer aeronautical programs.
l-3’s Texas fooTprInT With nearly 11,000 Texas employees, L-3 Communications is a major player in the Texas economy. The company, a top 10 U.S. Defense contractor, has business lines that run the gamut from surveillance and reconnaissance systems to secure communications, guidance, and navigation products Lance Martin, spokesman with L-3 Platform Integration, says innovation is key to the Texas divisions’ successes. L-3 celebrated the 25th anniversary of its Platform Integration facility in Waco, where it 1,600 employees modify military aircraft and vehicles in 430,000 square feet of hangar space. The company’s Link Simulation & Training division in Arlington began more than 80 years ago with the invention of the first pilot

PhoTo couRTeSy oF SheLdon cohen

maJor aeroSpaCe firmS iN texaS
American eurocopter bAe Systems bell helicopter Textron boeing co. Gulfstream Aerospace corp. nASA Johnson Space center L-3 communications Lockheed Martin Raytheon Triumph Aerostructures – vought Aircraft division

bell helicopter Textron has 7,700 Texas employees and 10,000 employees worldwide.


boeing co. delivers an estimated $2.1 billion economic impact in Texas.

raytheoN aNd boeiNG at home iN texaS
Fortune 500 company Raytheon is a technology and innovation leader specializing in defense, homeland security, and other government markets throughout the world. Raytheon has more than 10 facilities in Texas and is home to two of Raytheon’s nine integrated business divisions, intelligence and information Systems (iiS) in Garland and network centric Systems (ncS) in Mckinney. Raytheon has more than 9,400 Texas employees, more than 1,625 suppliers and an estimated $900.3 million economic impact in Texas. Aviation giant boeing has more than 5,700 employees in Texas at 1,304 supplier/vendor locations. The aerospace giant, which delivers an estimated $2.1 billion economic impact in Texas, recently won an Air Force contract that will bring another 2,500 jobs with 17 suppliers and $125 million to Texas.

training device. Since then, the company’s services expanded with programs that train aviators to operate manned and unmanned aircraft, such as the F-22, F-16, and Predator or Reaper aircraft. L-3 recently established the Link Simulation & Training Air Traffic Control Academy in Denison and constructed a $12 million aircraft hangar in Waco.
Texas InvesTmenTs lIfT Bell Robert Hastings, senior vice president of Bell Helicopter Textron, says the company’s Texas base is one of the keys to its growth. The Fort Worth-based company has 7,700 Texas employees and 10,000 employees worldwide, and an estimated $7.6 billion annual economic impact. Hastings says it’s easier to recruit employees to the region because it’s ranked as a top place in the country to live and work.


Texas WIde open for BusIness

texaS aviatioN aNd aeroSpaCe faCtS

Jobs related to general aviation and commercial service activity in Texas

$48.8 billion
annual general aviation and commercial service economic output in Texas

employees at the 1,700 companies in Texas in the aerospace and defense segment

Texas colleges and universities, along with 36 public high schools, that offer aeronautical courses
JeFF AdkinS

12.1 million
flight departures and arrivals annually at Texas commercial airports

faa-certified pilots (private, commercial and helicopter) who live in Texas Source: Office of the Governor, Economic Development and Tourism Division

Bell has a contract for cabin upgrades to the OH-58 Kiowa Warrior, a proven staple in the Army’s combat operations fleet, Hastings says. The Bell 429, a light twin helicopter, is another offering. Hastings describes it as one of the most advanced versions on the commercial market today. “The state’s leaders are dedicated to promoting economic growth, which makes it a favorable business environment,” Hastings says.



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a Gallery of Treasures
texas assembles a top collection of museums

San antonio museum of art



Story by Betsy Williams Photography by Brian McCord

exans don’t have to travel far to enjoy the works of history’s most renowned artists and collections that are the envy of the country’s top museums. Galleries throughout the state feature modern sculpture, Spanish art, Impressionist pieces, and classical works. The San Antonio Museum of Art (SAMA), whose historic castle-like buildings were once the 1904 Lone Star Brewery, maintains a collection of more than 25,000 pieces representing international cultures and more than 5,000 years of history. “Art collecting in Texas generally, and museums specifically, is tied in


many respects to Texas’ unique history,” says Robb Wasielewski, director of marketing for SAMA. “A rich cultural identity exists here since Texas was, at different points in history a part of France, Spain, and Mexico.”
World-Class ColleCTIons aCross The lone sTar sTaTe The Kimbell Art Museum in Fort Worth pursues quality over quantity, with fewer than 350 pieces in its permanent collection. Works include masterpieces from Picasso, Matisse, and Monet, and important collections of Egyptian, Near Eastern, Greek, and

Clockwise from top left: The Modern Art Museum of Fort Worth; Charity the Teacher by Lorenzo bartolini at the San Antonio Museum of Art; The dallas Museum of Art Sculpture Garden; Modern Art Museum of Fort Worth


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The Modern Art Museum of Fort Worth is the second-largest museum in the nation dedicated to contemporary and modern art.

Roman antiquities, as well as Asian, Mesoamerican, and African arts. The Kimbell’s reputation extends beyond the works found within its walls to its stunning design by American-born architect Louis I. Kahn. Kahn’s innovative use of natural light and subtle articulation of space and materials makes the museum itself a work of art. Fort Worth is also home to the Modern Art Museum of Fort Worth, the second-largest museum in the nation dedicated to contemporary and modern art, and the Amon Carter Museum of American Art, which features a collection of paintings and sculptures by Frederic Remington and Charles M. Russell – two of the greatest American West artists. In Dallas, the Nasher Sculpture Center combines more than 300 sculptures with 20th-century paintings and drawings to create a serene urban art experience downtown. Pre-Columbian and tribal art are exhibited alongside works by Matisse and Picasso. Pieces from the Nasher Collection have been shown around the world. Located in Houston’s Museum District, the Menil Collection campus is anchored by the Museum Building Renzo Piano’s first American building. The landmark structure houses one of the world’s great (and growing) art collections that range from antiquities to modern and contemporary art. The campus also includes a bookstore, the Rothko Chapel, the Cy Twombly Gallery, the Byzantine Fresco Chapel Museum, and the Dan Flavin Installation at Richmond Hall. The campus is described by its



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A mural on the floor in the lobby of The bob bullock Texas State history Museum in Austin.

director, Josef Helfenstein, as “a cultural oasis unlike anything else in America.” Museums and galleries aren’t limited to Texas’ metropolitan areas. Brazosport’s Center for the Arts & Sciences has an art gallery, a natural history museum, and two theaters for a variety of performing arts events. The Panhandle-Plains Historical Museum in Canyon is the largest history museum in Texas and includes comprehensive exhibits, many hands-on, highlighting the region’s history in petroleum, art, Western heritage, and more.

‘the Story of texaS’
The bob bullock Texas State history Museum in downtown Austin tells the “Story of Texas” with three floors of interactive exhibits, each dedicated different period in Texas history. The first floor, encounters on the Land, tells the story of exploration. The second floor, building the Lone Star identity, details the story of how Texas became an independent nation, and the third floor, creating opportunity, explores how Texans persevered on the land and how they approached everything from drilling oil to redefining world technology. The museum also features a 4-d special effects show, The Star of Destiny, and Austin’s only iMAx Theatre. A 35-foot-tall, bronze Lone Star sculpture greets visitors in front of the museum, and a colorful terrazzo floor in the museum’s rotunda features a campfire scene with enduring themes from Texas’ past. – Office of the Governor, Economic Development & Tourism Division




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a Growing appetite for Texas products
Agribusiness is feeding the lone star state economy
Story by Betsy Williams


exas’ agricultural roots are deep – one in seven working Texans are in an ag-related job. Texas’ more than 247,000 farms and ranches covering 130.4 million acres led the nation in quantity and acreage, as well as value of farm real estate. As the second-largest agricultural state, Texas accounts for 7 percent of the total U.S. agriculture income, and has an estimated impact of about $100 billion on the state’s economy. Texas leads the nation in cattle, sheep, and goat production, as well as cotton, hay, wool, and mohair production. Texas also produces more than 75 percent of the nation’s farm-raised shrimp. These days, the agriculture industry
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from left: Texas leads the nation in the production of cotton and many more products; A grain elevator near Lubbock



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Texas has more than 247,000 farms, and one in every seven Texans is employed in the agriculture industry.

in Texas is getting a boost from a growing global appetite for the products produced on the Lone Star state’s farms and ranches. Texas is the nation’s third-largest exporter of agricultural commodities. Mexico is the largest buyer of Texas agricultural exports, spending $3.1 billion last year on cotton, wheat, beef, pork, corn, and dairy products. “Ag exports are forecast to increase, especially in the near term, up to about $135.5 billion for the nation,” says Dr. C. Parr Rosson, professor and extension economist with Texas A&M University. Rosson says Texas’ agriculture exports are expected to reach $6.75 billion in fiscal year 2011,

compared to $5.45 billion in fiscal year 2010. The growth in exports for Texas and the nation is influenced by several factors, Dr. Rosson notes. Rising incomes in major markets such as Mexico, China, and Canada, as well as a weaker U.S. dollar, down nearly 20 percent since 2008, make U.S. products less expensive to foreign consumers and more competitive, relative to exports from key competitors such as Argentina, Brazil, and Canada. Tight supply conditions in other countries and new trade agreements also contribute to the growth in exports for Texas and the United States.

Even with those economic factors, the quality and quantity of the state’s agriculture products available for export is the real key to building global demand. In Texas, export growth has occurred in cotton, grains, meats, and dairy products.
Bumper Crop of neW JoBs Texas’ food manufacturing industry creates approximately 90,000 jobs in the state. Major employers include industry giants: Pilgrim’s Pride, CocaCola, Frito-Lay, Tyson, Cargill, Sunny Delight, Hostess, Del Monte, and JBS Swift & Co. From 2009 to 2010, the Texas food manufacturing industry saw

Texas’ rank among states for total agricultural income

$100 billion $6.75 billion
Impact of agriculture on the Texas economy estimated value for Texas agricultural exports in 2011

food production jobs in Texas



employment and wages increase, bucking other parts of the nation where the segment was losing ground. A Texas Workforce Commission forecast predicts moderate job growth will continue in the Texas food manufacturing industry through 2012. In the early months of 2011, some firms in Texas were talking expansion and job creation. Dean Foods, headquartered in Dallas, is planning to open a new production facility that is expected to bring as many as 100 new jobs by the time it begins operations in the first quarter of 2012. TreeHouse Foods plans to spend $85 million this year at two plants including one in San Antonio. Whole Foods Market Inc. in Austin is helping to turn the city into a hub for entrepreneurial food manufacturing. In recent years, Austin brands such as Tito’s Handmade Vodka, The Sticky Toffee Pudding Company, and NurturMe baby food have begun to generate national buzz. Meat and vegetable pie maker Boomerang’s, whose products are pitched as a lean and healthier version of other popular frozen pies, is planning to build a processing plant in Austin.

from top: oak Farms dairy, a Texas-based subsidiary of dean Foods, is one of the leading food and beverage companies in the united States and a european leader in branded soy foods and beverages; cargill beef is one of north America’s largest beef processors.

PhoToS by bRiAn MccoRd




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fueling the nation’s economy
texas energy industry pumps up to meet increased demand
Story by Bill Lewis

hile war and political instability threaten imported oil and natural gas supplies, oil produced by Texas companies, as well as natural gas from Texas wells, keeps the economy moving and provides reliable and more affordable resources than imported supplies. “At a time when people are talking about high gasoline prices and areas of the world that are troubled by war and instability, it’s important to use our domestic resources,” says Bill Day, an executive with San Antonio-based Valero Energy. To meet the country’s thirst for energy, many Texas oil companies are increasing crude oil production. Texas’ oil reserves represent almost 25 percent of the nation’s total reserve, while the state’s natural gas reserves


account for almost 33 percent of the nation’s total reserve.
refInerIes meeT demand Texas’ refining employers include many household names, such as CITGO, ExxonMobil, ConocoPhillips, Marathon, Shell, and Western Refining. Texas’ 27 refineries can process more than 4.7 million barrels of crude oil per day, and account for more than 25 percent of the country’s total refining capacity, and the amount is growing. Valero, for example, is expanding the capacity of its McKee Refinery by 25,000 barrels per day. It will soon be producing 195,000 barrels a day for the Texas market. That will help to keep the price of gasoline and diesel fuel within reach for consumers, since

texaS refiNerieS by the NumberS

number of refineries in Texas

4.7 million
Barrels of oil processed by the state’s refineries daily

percentage of nation’s refining capacity that is based in Texas

percentage of nation’s chemical value output from Texas

valero energy is expanding its Mckee and Port Arthur refineries. PhoTo by bRiAn MccoRd


oil produced and refined in Texas is $10-12 dollars per barrel cheaper than oil shipped across the ocean. “That’s good news for Texas producers and Texas consumers,” says Day. The company expanded its Panhandle Crude Gathering System and constructed new pumping stations to bring more locally produced crude oil to the McKee facility. It also is expanding its Port Arthur refinery.

“These expansion plans will enable Valero to capitalize on the production of West Texas and locally produced crudes. The McKee refinery will have more flexibility and more options, and that benefits Valero as well as the surrounding area,” says Joe Gorder, the company’s executive vice president and chief commercial officer.
oIl BuIlds naTIonal seCurITy, prosperITy Texas has developed major clusters

of energy production and innovation. Houston has more than 3,000 energyrelated companies, including two energy companies that are among 10 largest revenue companies on the Fortune 500. Texas’ plastics and chemicals industry has significantly benefited from the state’s energy industry. Texas has about 200 chemical plants which manufacture 14 percent of the nation’s value chemical output. Major Texas chemical producing companies

texaS aNNuaL Crude oiL produCtioN (iN miLLioNS of barreLS)
Source: U.S. Energy Information Administration












right: valero energy, headquartered in San Antonio, is expanding its u.S. refining capacity. Below: A working oil pump in Longview, Texas.

PhoToS by JeFF AdkinS

include Celanese, Chevron Phillips Chemical, ExxonMobil Chemical, Dow Chemical, Huntsman, Lyondell Chemical, and Shell Chemical. The Gulf Coast’s petrochemical complex is the world’s largest. The complex is home to more than 400 chemical plants that employ approximately 37,000 Texans. Houston accounts for nearly 40 percent of the nation’s base petrochemical capacity. A reliable energy supply is crucial for the country’s security and prosperity, says Paul Foster, CEO of Western Refining, based in El Paso. The company operates one refinery in El Paso and another in New Mexico. “Energy production, and its use, is at



Texas crude oil reserves represent about 25 percent of the u.S. total.

the core of the national and global economies,” Foster says. “Worldwide demand for energy is rising, especially in emerging markets such as China and India. As these and other markets continue to grow, global demand for petroleum products will continue to increase. Major weather events and political uncertainty contribute to upward pressure on prices for crude oil, natural gas, and other sources of energy. “At Western Refining, we understand the importance of providing energy for people and for the businesses that we all depend upon every day. A consistent supply of fuel is critical to our national security and economic well-being. We take this job very seriously.”

fortuNe 500 texaS petro refiNiNG CompaNieS
Company exxonMobil conocoPhillips valero energy Marathon oil Tesoro holly Western Refining Frontier oil 2010 revenues $354.7 billion $185.0 billion $86.0 billion $68.5 billion $20.3 billion $8.3 billion $8.0 billion $5.9 billion
more aT TexaseConomICdevelopmenTGuIde.Com


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power players
texAs’ own Power GriD serves 23 million PeoPle
The scale of Texas’ power grid is staggering, and no other state has its own grid. Texas is powered by many different fuels including natural gas, coal, nuclear energy, wind power, and solar power, but they all have one thing in common: the electricity they generate travels over the state’s own power grid on its way to millions of customers. The vast majority of that grid is overseen by the electric Reliability council of Texas (eRcoT), which manages the flow of electric power to almost 23 million Texas customers, representing 85 percent of the state’s electric load and 75 percent of its land area. eRcoT schedules power on the grid that connects 40,500 miles of transmission lines and more than 550 generation units, demand for power provided by the grid is growing. eRcoT says that electricity use was up 3.5 percent over 2009 use. eRcoT’s 2010 net energy load for was 319,097 gigawatt hours (GWh), compared to 308,278 GWh in 2009. of the power eRcoT produced in 2010, 38 percent came from natural gas, 40 percent from coal, and 13 percent from the state’s two nuclear power reactors, comanche Peak nuclear Power Plant and the South Texas Project. The South Texas Project is one of the newest and largest nuclear power facilities in the nation. STP’s two units produce 2,700 megawatts of carbon-free electricity, providing clean energy to 2 million Texas homes. According to the u.S. energy information Administration, Texas is one of the 10 largest states in terms of nuclear capacity, accounting for almost 5 percent of the u.S. total. As of June 2011, Texas had increased installed wind capacity to 10,135 megawatts, becoming the first state with more than 10,000 megawatts of installed capacity and accounting for more than 25 percent of the nation’s total capacity. – Bill Lewis

Mexia, Texas is the Magical Middle of America. Whether you are looking for family fun or a site Equidistance between Seattle and Miami, for business, Mexia, Texas is the right choice. Mexia is where magic and reality become one. Come look us over, you’ll like what you see!


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The Chips are up
A legacy of innovation builds a robust technology sector
Story by John Fuller

echnology is not a new fad in Texas. Nanotechnology and semiconductors forged an innovative advanced manufacturing segment of the Texas economy with a distinguished track record to prove it. Texas is the birthplace of the integrated circuit and an entire industry that has grown up around the chip with the help of the state’s world-renowned research institutions and universities, a highly skilled workforce, and key investments by public and private partners. More than 26,000 high-tech companies, with more than 470,000 employees, make their home in Texas. Research and development expenditures for microelectronics and computer technology at Texas higher education institutions top $74 million annually.
nanoTeChnoloGy Is no small ThInG Nanotechnology is the understanding of very small materials at the atomic scale, but the size of the sector in Texas is huge. Texas is a global leader in nanotechnology research and distribution, and is nationally ranked for its nanotech-related research, venture capital,
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left: The Austin Technology incubator helps companies transition from early-stage ventures to successful technology businesses.



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lynntech in College Station received a texas Emerging technology fund (tEtf) award to help develop its hydrogen fuel cell technology.

and commercialization efforts. Applied Optoelectronics Inc. (AOI), based in Sugar Land, is the world’s leading manufacturer of highperformance semiconductor laser diodes, which are used in high-speed fiber-optic data transmission. The company specializes in devices that enable advanced telecommunications networks to connect hundreds of millions of homes and small businesses worldwide to the Internet. “For rapidly growing hightechnology companies, Texas in general, and the Houston area in particular, have a near-ideal combination of business-friendly tax policies, highly skilled labor force,

texaS hiGh-teCh iNduStry by the NumberS

number of firms

Texas technology employees

average weekly computer job pay

$47.2 billion
value of computer industry shipments (2008)

Texas’ rank in engineering services, communications services, and semiconductor manufacturing jobs in 2008 Source: Texas Workforce Commission - 2010Q2 Employment & Wages; Annual Survey of Manufactures, 2008
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The Austin Technology incubator, a nonprofit unit of The university of Texas in Austin, has worked with more than 200 companies, helping them raise more than $750 million in investor capital. P h o T o b y b R i A n M c c o R d

favorable cost of living, and a strong connection to the global business community,” says Stefan J. Murry, Ph.D., vice president, global sales and marketing for AOI. The company was founded 15 years ago in Houston, and has grown to more than 800 employees and 300 customers in 27 countries around the world. LynnTech is a research and technology development company based in College Station that specializes in innovation in energy, water, and health technologies. LynnTech received a Texas Emerging Technology Fund (TETF) grant to further develop its hydrogen fuel cell research technology. Company officials say one major

benefit of the grant is that it will serve as a catalyst to attract new scientific and engineering talent to Texas as LynnTech improves on this technology.
Texas Is sTIll In The ChIps and more Texas has been a global leader in the semiconductor industry since the 1950s. The Lone Star state ranks second in the nation in high-tech workers, technology job growth, high-tech payroll, number of tech establishments, and semi-conductor manufacturing employment. Major Texas semiconductor employers include three companies in the Global Top 20 rankings, Texas Instruments (4), AMD (12), and Freescale

Semiconductor (16), as well as Samsung, Raytheon, and Labinal. Samsung is expanding its semiconductor business in Austin, creating 500 additional jobs to produce advanced logic devices for its LS1 business. With the latest $3.6 billion expansion, the Korean company has invested more than $9 billion in Texas. One of the state’s leading semiconductor companies, X-FAB Texas Inc., has developed an innovative way to extend the life and productivity of its 31-year-old facility in Lubbock. X-FAB and Cymbet Corp., a leader in solid-state energy storage solutions for microelectronic systems, announced a manufacturing


iN faSt CompaNy raCkspaCe hosTInG GaIns naTIonal noTICe
San Antonio-based Rackspace hosting inc., seventh on Forbes magazine’s 2011 list of the 25 Fastest Growing Tech companies in the u.S., is the world’s leading specialist in the hosting and cloud computing industry. The company, founded in 1998, delivers enterprise-level hosting services to businesses of all sizes and kinds around the world. Rackspace serves more than 130,000 customers, including more than 110,000 cloud-computing customers, and was no. 11 on the magazine’s listing of the Top 100 best Small companies in America.

cooperation agreement that will result in the world’s highest-volume solidstate battery (SSB) production facility. This new facility, scheduled for initial operation in 2011, will significantly increase Cymbet’s manufacturing capacity for its EnerChip™ product to satisfy the growing global demand for eco-friendly rechargeable solidstate batteries. Cymbet officials are excited to be able to partner with a U.S. supplier that has such a wealth of technological experience. “The proven expertise, capabilities, genuine partnership attitude, and world-class people we sought are right in Lubbock,” says William Priesmeyer, Cymbet president and chief executive officer. “We have absolute confidence and commitment this will be a lasting relationship that will bring good job growth to Lubbock.” X-FAB officials say the agreement leverages the experience, resources, and equipment that X-FAB already had at its Lubbock facility, and will create more than 150 jobs over the next several years.
a BoosT To emerGInG fIrms One of the major reasons for the continuing vitality of the technology sector in Texas is the number and quality of the public and private research institutions in the state. Additionally, there are other institutions that have organized around encouraging entrepreneurs to transition from early stage ventures into full-scale commercialization. One stellar example is the Austin Technology Incubator, a nonprofit unit of The University of Texas at Austin. Since its founding in 1989, ATI has worked with more than 200 companies, helping them raise more than $750 million in investor capital. While ATI assists entrepreneurs, it also provides a teaching laboratory for UT-Austin students.

LynnTech develops a broad range of fuel cells for commercial and military applications.

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Industry in overdrive
texAs AccelerAtes Automotive investment
The Lone Star State has a strong presence in the automotive manufacturing sector and has emerged as an important global player in the industry. Texas ranks sixth in the united States for automotive manufacturing industry employment with 29,200 directworkers and 131,191 indirect-workers. An additional 17,802 workers are employed in Texas’ automotive supplier sector. Texas is part of the growing nAFTA-spurred automotive industry corridor, which runs from Mexico to canada along interstate 35. This corridor has fast become known for its large, skilled, cost-effective labor pool, and excellent market access. Texas ranked third in 2010 for transportation equipment exports, with a value of nearly $32.8 billion. Major automotive manufacturing plants in Texas include operations for General Motors and Toyota. GM’s Arlington plant is the company’s only remaining plant building full-size Suvs, and in 2007 the facility began building hybrid versions of the Tahoe, yukon, and cadillac escalade. Toyota began building its Tundra full-size pickups in Texas in 2006, and consolidated all of its Tundra truck production in Texas at its massive San Antonio facility in 2009. in August 2010, the facility began manufacturing the Tacoma pickup for the entire north American market. The 2.2-million-square-foot complex employs 2,800 workers and on-site suppliers employ another 2,100.

heavy TruCks are BIG In Texas
it’s no wonder that Texas has become a truck-building center. The state accounted for close to 15 percent of the nation’s new, full-sized pickup market in 2010. Texas ranks in the top 10 in heavy-duty truck manufacturing for both facilities and employment. Major employers in this sector include Peterbilt, with 500 workers at its denton facility that produces fuel cell, LnG, and hybrid versions of its vehicles; and navistar, which operates a truck assembly plant in Garland. bAe Systems, a global defense and aerospace giant, operates a heavy-duty truck plant in Sealy, and employs more than 1,400 workers. Texas is also home to about 130 trailer and specialty vehicle makers and more than 280 automotive parts manufacturers. Texas is a leader in the production of green products and technologies in the auto sector. in addition to GM and Peterbilt’s hybrid operations, the Ronn Motor co. in Marble Falls and community cars inc. in Austin are planning to develop and build cars that are fuel efficient and cater to unique customer segments. – John Fuller

Toyota builds its Tacoma and Tundra trucks at its assembly plant in San Antonio.


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P h o T o c o u R T e S y o F T o yo TA M o T o R S A L e S u S A


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from here to anywhere
Airports, roads, rail, ports make texas a strategic gateway
Story by Joe Morris


The Fort Worth Alliance Airport serves as a hub supporting major distribution and manufacturing operations.

P h o T o b y d e b R A h A L e , c o u R T e S y o F h i L LW o o d d e v e L o P M e n T c o , L L c

exas boasts a transportation infrastructure that’s rightfully achieving worldwide acclaim. Much of this infrastructure has come online despite lean economic times. That’s a testament not only to the state’s recognition of the economic development value of multimodal transportation hubs, but also to its thriving public-private partnerships. Consider the Alliance Global Logistics Hub. The Hillwooddeveloped property, part of a larger, master community, began in 1987 as a supplemental airport to an overcrowded Dallas/Fort Worth International Airport, but has morphed into an industrial hub for air, rail, and ground shipping. In 2010, it was the nation’s No. 1 Foreign Trade Zone, processing more than $5 billion in goods. “It grew into a bigger idea,” says Mike Berry, president of Hillwood



Fort Worth Alliance Airport

P h o T o b y d e b R A h A L e , c o u R T e S y o F h i L LW o o d d e v e L o P M e n T c o , L L c

texaS airportS by the NumberS

Total airports

Properties. “We began to talk to the market about what the airportinfrastructure needs were for north Texas, and as we talked to defense contractors, manufacturers and airlines, we saw the need for a major industrial airport.” The facility houses everything from international headquarters to satellite operations for major companies like Lockheed Martin, Bell Helicopter, JC Penney, FedEx, American Airlines, and Southwest Airlines. The original 4,000-foot runway was expanded to 10,000 feet and can now handle larger planes like Boeing’s new 747-800. “This industrial airport has become something very unique and very different,” Berry says. “We worked to

develop good highway and rail systems to and through here, as well as good port connectivity. And now we draw companies that want to be around this integration of multimodal transportation infrastructure.” “North Texas has become the demographic center of North America,” says Hillwood Chairman Ross Perot Jr. “If you look at all of North America as a trading block, you certainly would want to have your company located in north Texas. We’re in the middle of the country in a pro-growth state with no state income tax, where there is a strong workforce, a strong transportation system, and a beautiful quality of life.” Berry adds that “developing a state-

Commercial airports

airports offering Customs service

number of faa-certified pilots who live in Texas

number of passengers boarding flights in Texas (2008)




of-the-art transportation system in Texas is the most important thing we can do. Our state alone is one of the top economies in the world, and we are continuing to make sure that all our economic centers are linked together by efficient highway, rail, port, and airport activity.”
porTs play key role Texas has 29 ports, including 13 deep-water ports. The Port of Houston, a 25-mile stretch of public and private facilities, is the country’s top-ranked harbor for foreign waterborne tonnage and seventhlargest container port. More than 220 million tons of cargo moved through the port in 2009 alone. Corpus Christi is home to the nation’s sixth-largest port in total tonnage and a sophisticated multimodal transportation infrastructure. The port has a channel

Port of Corpus Christi, the sixth-largest port in the united States in total tonnage

texaS deep-water portS
Texas has 13 deep-WaTer porTs: beaumont, brownsville, calhoun, corpus christi, Freeport, Galveston, houston, orange, Port Arthur, Port isabel, Port Mansfield, Port Sabine and Texas city. Texas has more than 1,100 mIles of Channel maintained by the Army corps of engineers. Texas ports create nearly 1 mIllIon JoBs, generating around $48 million in income. The Port of houston ranks no. 2 In The naTIon for total cargo tonnage.
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For more information, visit the Texas Ports Association at



depth of 45 feet, 300,000 square feet of covered dockside storage, truck and rail access, and a Foreign Trade Zone. Recently, the port has undertaken an ambitious expansion program. Part of that expansion, the La Quinta Trade Gateway Terminal, will be developed on a 1,100-acre greenfield site on the north side of Corpus Christi Bay. Once completed, the multipurpose dock and container facility will be capable of handling 1 million 20-foot-equivalent (TEUs) shipping containers a year.
Texas on TraCk WITh raIl Texas leads the nation in total freight rail miles, with 14,982. In 2007, more than 2 million rail carloads traveled through the state, the second-largest volume in the nation.

Fort Worth-based BNSF Railway is one of North America’s leading freight transportation companies, operating on 32,000 route miles of track in 28 states and two Canadian provinces. Matt Rose, BNSF chairman, president and CEO, says Fort Worth is well positioned to serve as a national business center and transportation hub. “A friendly business climate has meant a great deal to BNSF and our growth here,” he says. “Fort Worth and Texas are a key part of our network. We operate on nearly 5,000 route miles of track and originate or handle nearly 6 million carloads of freight in the state. Between our headquarters in Fort Worth and our operations in the rest of the state, we employ nearly 7,500 Texans with a payroll of more than $785 million.”

raiL faCtS
• Texas leads the nation in total freight rail miles with 14,982. • Forty-four railroads operate in Texas and carry more than 384 million tons of freight a year. • Texas offers multiple points of rail access to Mexico’s industrial north.

A bnSF train passes through downtown Fort Worth. P h o T o b y J e F F A d k i n S


laredo a key Inland porT The Texas-Mexico border has 29 official border ports of entry, which provide direct access to Mexico and Latin America markets. The Logistics & Manufacturing Association of Port Laredo makes the most of Laredo’s strategic location and works to expand its trade footprint in many ways, says Javier Garza, president. “Laredo is the busiest inland port on the U.S.-Mexico border, and the second busiest in the United States,” Garza says. “And Nuevo Laredo, across the river and border, is the busiest port in Latin America. International trade is our livelihood, and railroads, trucking, any way we can build our infrastructure, we look to make happen. Everything that we can do, and we get a lot of help from our local and state governments, we do to keep encouraging that growth.”

what’s online
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from top: State highway 287 in Lufkin; corpus christi international Airport

for a full list of commercial airports, visit the Texas department of Transportation at travel/commercial_airports.


Texas WIde open for BusIness

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high fliers
texAs is A force in Air trAnsPortAtion
Texas is home to two of the world’s largest airlines and major hub for a third. Founded in 1930, American Airlines moved its headquarters from new york to Fort Worth in 1979 and has since become one of the largest airlines in the world, contributing nearly $100 billion to the u.S. and international economies, and more than 900,000 jobs worldwide. American’s headquarters at dallas/ Fort Worth occupy about 1.4 million square feet and house more than 4,300 employees. in June 1971, Southwest Airlines incorporated and began serving dallas with three boeing 737 aircraft to serve houston, dallas and San Antonio. Today, it operates more than 548 737s to 72 cities in 37 states. Southwest recently formed a partnership with Mexico’s secondlargest carrier, volaris Airlines. This new partnership allows customers to make reservations through Southwest to cancun, Guadalajara, Morelia, Toluca/Mexico city, and zacatecas. Southwest has 35,000 employees nationwide with around 10,500 in Texas. While the 2010-11 merger of united and continental Airlines means Texas is no longer home to a third major airline, houston will still be the new company’s largest hub. united and continental continue to operate separately under united continental holdings inc. until receipt of a single operating certificate from the Federal Aviation Administration, which they expect to receive by the end of 2011. – Texas Office of the Governor, Economic Development & Tourism Division

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a strong picture of health
high-quality treatment, facilities blanket the lone star state

Story by Melanie Hill

rom world-class research and renowned teaching hospitals to comprehensive health systems and a network of community hospitals, Texas is a leader in medical treatment, innovation, and expertise. The state’s 592 hospitals include more than 80,000 beds and some of the nation’s most respected medical programs and physicians. “Texas hospitals are as diverse as the state’s geography, from world-class teaching and research facilities, to small community hospitals,” says Dr. Dan Stultz, president and chief executive officer of the Texas Hospital Association. “In addition to enhancing quality of life in the communities they serve, Texas hospitals contribute to the state’s economic viability through local spending and job creation.” The Texas health care industry
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left: St. Joseph health System in bryan right: Scott & White hospital in Temple


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“Texas hospitals are as diverse as the state’s geography, from world-class teaching and research facilities to small community hospitals.”

includes more than 360,000 fulland part-time hospital employees, generating $22 billion in annual payroll and $137 billion in estimated economic impact. Texas Medical Center in Houston, the world’s largest medical complex is comprised of 49 member institutions, including 21 academic institutions, 14 hospitals, six nursing schools, and three medical schools – among them, the world-renowned M.D. Anderson Cancer Center. Austin’s fifth-largest private employer, St. David’s HealthCare,

employs 7,000, and generates some $3.1 billion in annual gross revenues. The system has recruited worldrenowned specialists to its Texas Cardiac Arrhythmia Institute, the NeuroTexas Institute, and the Texas Institute for Robotic Surgery, home to the nation’s first Robotic Institute University. “Texas is a sought-after destination, which helps us attract the best and the brightest,” says Amanda McCrary, vice president of physician recruitment and sales for St. David’s HealthCare. “We’re able to invest in world-class
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from left: covenant hospital Levelland; cook children’s hospital in Fort Worth


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technology and really align with physicians.” Top-level care isn’t exclusive to the state’s biggest cities. Temple-based Scott & White Healthcare is the largest multi-specialty practice in Texas, and one of the nation’s largest multispecialty group practice systems. This year, Trinity Mother Frances Hospitals and Clinics broke ground in Tyler on the region’s first freestanding heart hospital. The Louis and Peaches Owen Heart Hospital includes a cardiac intensive care unit with 24 private rooms and will house comprehensive cardiac, thoracic, and vascular services. “The Heart Hospital truly is a new approach to providing a continuum of cardiac care,” says Dr. C. Fagg Sanford III, Trinity Mother Frances chief of cardiology. “We patterned it on a bestpractice model where a patient’s stay is in one location, with strong family

involvement and the appropriate level of care is brought to the patient.” Patients in South Texas’ Rio Grande Valley turn to Doctor’s Hospital at Renaissance in Edinburg. The 503-bed facility has been ranked among the nation’s best by Thomson Reuters three years running. DHR recently opened a major addition, which includes a new medical tower with an expanded Emergency Department, a new Pediatric Intensive Care Unit, and pediatric oncology services. In 2011, Texas ranked in the Top quintile for hospital performance and nine Texas hospitals landed on Thomson Reuters’ “100 Top Hospitals” list. The study uses objective research and independent public data to recognize the best U.S. hospitals. Overall performance, operational efficiency and financial stability are among measurement criteria.

texaS hoSpitaLS by the NumberS

hospitals in Texas

patient beds

number of workers in Texas’ hospital industry

$137 billion
annual economic impact from Texas hospitals Source: Texas Hospital Association

Clockwise from top: Providence hospital in Waco; chRiSTuS Spohn hospital corpus christi; covenant hospital in Lubbock



making news
texAs hosPitAls GAin internAtionAl recoGnition
in 2011, Texas ranked in the top quintile for hospital performance and nine Texas hospitals landed on Thomson Reuters’ “100 Top hospitals” list, which uses objective research and independent public data to recognize the best u.S. hospitals. overall performance, operational efficiency and financial stability are among measurement criteria. Teaching hospitals recognized for 2011 were memorial hermann hospital system in houston and Corpus Christi medical Center in corpus christi. Among large community hospitals, Thomson Reuters recognized Trinity mother frances hospital in Tyler; Baylor all saints medical Center at Fort Worth; st. david’s medical Center in Austin; and ChrIsTus st. michael health system in Texarkana. memorial hermann katy hospital was the sole Texas recipient for medium community hospitals, while Baylor medical Center at Waxahachie and the memorial hermann sugar land hospital in Sugar Land were among the nation’s top small community hospitals. every year U.S. News reviews data for nearly 5,000 hospitals in 16 adult specialties and 10 pediatric specialties, and publishes the U.S. News Best Hospitals and Best Children’s Hospitals lists. in 2011, only 140 facilities ranked in at least one adult specialty and only 76 ranked in top 50 in at least one pediatric specialty. While 14 Texas facilities ranked nationally in at least one adult or pediatric specialty a few facilities stood out. houston’s Md Anderson cancer center received the group’s most distinguished recognition as the no. 1 hospital for cancer treatment. Md Anderson also ranked #6 in ear, nose, and throat care; #6 in gynecology; #10 in urology; #22 in gastroenterology; and #28 in diabetes and endocrinology. Md Anderson also ranked #14 in pediatric cancer. Texas children’s hospital in houston was named as the fourthbest children’s hospital in the nation and ranked in all 10 pediatric specialties, including nine top-10 rankings. The pediatric teaching hospital ranked #4 for cardiology and heart surgery, neurology and neurosurgery, cancer, and gastroenterology; #5 for nephrology, pulmonology, and neonatology; #10


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for diabetes and endocrinology; and #16 in orthopedics. children’s Medical center in dallas also ranked nationally in all 10 pediatric specialties including three top-10 rankings, up from one last year. Top-10 specialties include #3 in orthopedics; #9 in nephrology; and #10 in urology. other Texas hospitals with at least one specialty in the top-10 include houston area St. Luke’s episcopal hospital, #4 in heart and heart surgery; Menninger clinic, #5 in psychiatry; and TiRR Memorial hermann, #4 in rehabilitation.

Clockwise from top left: Trinity Mother Frances hospital in Tyler; chRiSTuS St. Michael health System in Texarkana; baylor All Saints Medical center at Fort Worth

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Where Big Ideas are Born
texas schools bring new discoveries to life
Story by Katie Kuehner-Hebert

S TA F F P h o T o

exas universities are innovation breeding grounds, delivering new processes, products, and technologies to market across a range of industries, including electronics, medical, biotechnology, aerospace, advanced materials and energy. Texas colleges and universities are among the main drivers of innovation in the state, generating more than 7,600 patents in 2010, according to the U.S. Patent and Trademark Office. The University of Texas (UT) System has more than 211,000 students enrolled at nine universities and six health institutions. In 2010, the UT System was ranked third-best higher education operation in the world in terms of patent strength, according to Intellectual Property Today. More than 800 patents have been granted to UT-Austin. Last year, licensing agreements for use of technologies developed at the university generated $14.3 million. Within its 350-acre main campus in Austin, research at the Texas Advanced Computing Center is aided by one of the most powerful openscience supercomputers and lasers in the world. UT-Austin also conducts


research at the J.J. Pickle Campus, Brackenridge Field Laboratory, Marine Science Center and McDonald Observatory. In 2010, the university received more than $644 million in research funding. UT has several units dedicated to building and developing entrepreneurship, including the IC2 Institute, the Austin Technology Incubator and Texas Venture Labs. IC2 Director Isaac Barchas says more than 3,200 companies have transferred technologies learned from university research in computer, wireless communication, bioscience, and life science technologies. Most of these companies remain in the area. “Texas has a very attractive business environment and Austin in particular is a very attractive place to live,” Barchas says. The Texas A&M University System has more than 120,000 students enrolled at 11 universities and one health science center. Texas A&M University in College Station is listed among the National Science Foundation’s Top 20 Academic Research Performers for its $631 million in research expenditures in

The harte Research center on the campus of Texas A&M corpus christi


fiscal year 2009. “Studies show that states which expand and enhance university research help drive industrial R&D and local innovation,” says Jeffrey R. Seemann, the system’s chief research officer. “Texas A&M University is one of the nation’s emerging powerhouse research institutions.” Texas A&M’s Research Park has more than 550,000 square feet of space available to private companies and organizations interested in collaborating with the university to accelerate the transfer of new biomedical, engineering, information, and life sciences technologies into the marketplace. In 2010 alone, research within the Texas A&M system produced 207 inventions, 38 patents, and 46 technology licenses. The Texas Tech University System has more than 40,000 students enrolled at two universities and one health science

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center. Two of Tech’s most prominent research facilities are the Center for Pulsed Power and Power Electronic and the Wind Science & Engineering (WiSE) Research Center. Considered the nation’s university leader in pulsed power research, the Center has been instrumental in the U.S. military’s efforts to combat improvised explosive devices (IEDs). WiSE researches ways to exploit the useful qualities of wind and mitigate its detrimental effects. WiSE developed the enhanced Fujita tornado scale, FEMAadopted storm shelter regulations, and one of the world’s largest tornado vortex simulators.

texaS pateNtS awarded
8000 7625 7250 6875 6500 6125 5750

Source: U.S. Patent & Trademark Office

Clockwise from top left: Researcher nimit Patel demonstrates a high density optical brain imager at the university of Texas at Arlington; Texas A&M university in college Station; Texas Tech university in Lubbock; university of Texas at Austin

5375 5000 2006 2007 2008 2009 2010



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texaS hiGher eduCatioN eNroLLmeNt (faLL 2010)
Private colleges and universities 121,428 Texas State Technical colleges 13,024 Public universities 557,550 Junior colleges 1,466

community and State colleges 730,228
Source: Texas Higher Education Coordinating Board

In July 2010, Gov. Rick Perry announced an $8.4 million Texas Emerging Technology Fund (TETF) award to create a Renewable Energy Institute in Lubbock. Texas Tech and the National Institute for Renewable Energy, a nonprofit, public/private collaboration will work to help resolve key scientific and technology issues facing the wind power industry. “Texas is home to some of the brightest minds in the energy business, both in the private sector and at our world-class universities, like Texas Tech,” Gov. Perry said. In 2011, the University of Houston joined UT and Texas A&M, becoming the third Carnegie-designated Tier One research university in Texas, and just one of 109 in the nation. “The Carnegie recognition will bring greater visibility to Houston and lead to more economic development for the region and sustained research


Texas WIde open for BusIness

productivity,” says Richard Bonnin, UH spokesman. World-class research is conducted at UH’s 40 research centers, laboratories, and institutes. As a public institution, UH commercializes its academic research inventions to demonstrate the benefits of investments made in research through state budget allocations, as well as federal grants and awards. UH faculty received more than $100 million in research grants last year. “These hubs produce a wealth of new information about anything from getting oil out of the ground more efficiently, to encouraging the marketing and medical community to focus on issues affecting health-care delivery,” Bonnin says.
from left: A researcher at the Texas institute for Genomic Medicine; Texas A&M kingsville college of Pharmacy; Texas colleges and universities have enrollment of more than 1.42 million students.

health c a r e





senior liVing


Just the facts, please.

MOVING schools



Visit for our enhanced Demographics section, now rich with quick, pertinent details about the state.



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Best in Class
texAs boAsts hiGhly rAteD PrivAte universities
Texas not only has some of the best public universities in the country, but also boasts several premier private universities. Rice university in houston, Trinity university in San Antonio, Southern Methodist university in dallas, and baylor university in Waco were included in Kiplinger’s “best values in Private colleges” list. The rankings consider academic quality and affordability, with quality accounting for two-thirds of the total. Rice was fourth, Trinity 26th, SMu 59th and baylor 62nd on the ranking. Rice university was also among the top 25 on Forbes “best colleges in America” list. The school discounts tuition for students with its $3.5 billion endowment, one of the largest in the world. As a result, Rice’s tuition and fees – $26,500 this year – are substantially less than those charged by comparable private institutions. Rice’s graduates go on to graduate school or enter the workforce with less than half the debt of ivy League graduates. Rice will even meet the financial aid of students whose families make $30,000 or less with grants and work study programs – no loans. on average, 84 percent of its student body receives financial aid, and 81 percent graduate. Rice also received a carnegie designation for its very high research activity. The school’s undergraduate population is 3,120, with an 8:1 student-tofaculty ratio. – Katie Kuehner-Hebert

one city | infinite opportunities
Round Rock, Texas …
Science and technology are evolving at an unprecedented pace resulting in radical transformations of economies, governments and society worldwide. Traditionally, economic growth was based on the physical resources and the products they yielded. Knowledge is the new economic fuel driving the modern economy, and economic growth is now inextricably linked to the capacity for innovation. To compete and prosper, it is necessary to adapt and harness the opportunities that innovation presents at the pace they are presented. Round Rock is where the future of the Life Science Industry is being educated.

512.255.5805 •

baylor university in Waco

Round Rock Economic Development Partnership is a public-private partnership between the City of Round Rock and the Momentum Investors of the Round Rock Chamber of Commerce.

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Big as all outdoors
texas delivers a lifestyle flavored by nature
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a family enjoys a day on the river at guadalupe river State Park, located 13 miles outside of boerne. STAFF PHoTo



Clockwise from top: Anglers wait for a bite at cassells-boykin county Park near Lufkin; Fiesta San Antonio started in 1891 and has evolved into one of the nation’s premier festivals; birdwatching is a popular pasttime in Texas; on the diamond in McAllen

Story by Katie Kuehner-Hebert

rom natural wonders complementing worldclass cultural destinations and affordable family-friendly neighborhoods and recreational opportunities for the most active or the quiet bird-watcher, Texas is one of the most livable places in the country. Four Texas cities made the Top 25 list of CNNMoney’s Best Places to Live, including the Dallas suburb of McKinney, which ranked No. 5 on the list. With its restored 19th-century downtown, the community of 125,000 with a median family income of $107,046, has posted job growth of 125 percent in the past decade and enjoys favorable real estate prices - the average listing on 2010 was $267,661.



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S TA F F P h o T o




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A variety of businesses call McKinney home, including defense contractor Raytheon, which has a 3,700-person division there. Texas cities joining McKinney on the list were Allen and Rowlett, both in the Dallas-Fort Worth Metroplex, and Missouri City in the Houston area.
aCColades for affordaBIlITy According to the ACCRA Cost of Living Index, Texas is one of the most affordable states in which to live and conduct business. The ACCRA index for most metro areas in Texas is lower than the national composite index of 100. The Lone Star State also has one
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of the lowest state and local tax burdens in the country, according to The Tax Foundation. Texas cities dominated Kiplinger’s Cheapest Cost of Living list in 2011, claiming five of the top 10 spots. Brownsville took the top spot followed by Fort Hood (#3), Sherman, (#5), Waco (#7), and Austin (#9).
BeaChes, praIrIes and foresTs With endless miles of rivers and 624 miles of sparkling coastline, mountain ranges, and national forests, Texas has something for everyone. Texas has 18 wildlife refuges, 13 national parks, and more than 120 state parks,

Clockwise from far left: outdoor dining at Mi Tierra in downtown San Antonio; Soccer practice at hawkins Spring Park in Midlothian; biking on the Trinity River Trails in Fort Worth


San Marcos Premium outlets is a major shopping draw. STAFF PhoTo


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four Texas cities made the Top 25 list of Cnnmoney’s Best places to live …
historic sites, and natural areas. The Gulf Coast region boasts most of the sites of the Great Texas Coastal Birding Trail, the country’s top birdwatching destination. Those who enjoy traveling down the nostalgia highway need look no further than Route 66 in the northern part of the Panhandle. South of Amarillo lies one of Texas’ largest and most scenically aweinspiring attractions, Palo Duro Canyon State Park. Northeast Texas is dotted with thousands of acres of pine and hardwood forests, the nation’s largest municipal rose garden in Tyler, and further south, the Big Thicket National Preserve, with mammoth bald cypress trees and lush wetlands.
IT’s easy To GeT ouTdoors Outdoor enthusiasts love Big Bend National Park and Guadalupe Mountains National Park, home of the state’s highest point and one of the state’s most beautiful spots, McKittrick Canyon. State parks include Monahans

Sandhills State Park and Balmorhea State Park, home to one of the largest man-made pools in the United States. The Hill Country region, which reaches into parts of the San Antonio metro area and the state’s capital in Austin, is home to underground caverns such as Inner Space Caverns and Natural Bridge Caverns, as well as wineries, dude ranches, and historic structures of early Texas settlers. History is abundant in the South Plains, where sites across the area map Texas’ path to independence and include vestiges of conquistador explorations and Franciscan missions, as well as ample Spanish mission architecture in San Antonio and Mission Espiritu Santo in Goliad. The Rio Grande Valley is one of the best birding and butterfly-watching spots in North America and houses the World Birding Center within BentsenRio Grande Valley State Park.




Every step you take in the Susan G. Komen Race for the Cure® helps raise vital funds for the fight against breast cancer. But don’t let your journey stop there. Take a step toward improving your own health by educating yourself about the disease and getting regular screenings. Step by step, this Race will be won. Learn more about the Komen Race for the Cure by visiting or calling 1-877 GO KOMEN.
This space is provided as a public service. ©2008 Susan G. Komen for the Cure®


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plenty to Cheer about
texAs is A winner for biG-time sPorts Activities
From pee-wee leagues to the pros, from participatory to spectator, Texas is a hit for sports fans. Texas is home to more than 900 golf courses, and some of the best in the nation according to Golf Magazine, including Fazio canyons and Fazio Foothills, both at the barton creek Resort in Austin. The PGA Tour makes four stops in Texas every year: the Shell houston open at the Redstone Gc Tournament course in humble; the valero Texas open at the TPc San Antonio; the crowne Plaza invitational at colonial in Fort Worth; and the hP byron nelson championship in dallas. Two weekends a year, nAScAR’s camping World Truck Series, nationwide Series, and Sprint cup Series stop at Texas Motor Speedway, north of Fort Worth. The speedway also hosts the indy Racing League indycar series race, the bombardier Learjet 550. Many professional sports teams call Texas home. The dallas/Fort Worth metroplex is home to the 2011 nbA champion dallas Mavericks, the 2010 American League champion Texas Rangers, as well as the dallas cowboys, dallas Stars, and Fc dallas. houston teams include the houston Texans, Astros, Rockets, and dynamo. San Antonio has the Spurs and the Silver Stars. Sports fans can also root for a host of nationally ranked collegiate programs. Perennial powerhouses like Texas, Texas A&M, Texas Tech, baylor, and Tcu compete in the ncAA’s top conferences. Texas teams have won many ncAA championships throughout the years including the 2011 ncAA Women’s basketball champion Texas A&M Lady Aggies. no place is bigger for high school football than Texas. Texans’ love for Friday night football was the inspiration behind the book, movie, and television show, Friday Night Lights. Texas high school football programs turn out some of the top-rated players and teams in the country. – Katie Kuehner-Hebert

The nAScAR Sprint cup Series Samsung Mobile 500 is one of the races run at Texas Motor Speedway outside Fort Worth.

PhoTo couRTeSy oF Ge T T y iMAGeS



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fiesta san antonio photo by Brian mcCord


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longhorn cattle in midlothian photo by Brian mcCord




mcallen art district photo by Jeff adkins


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Bluebonnet, the state flower, in Bryan and College station photo by Jeff adkins




a reddish egret off the shore of mustang Island staff photo


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Waco suspension Bridge over the Brazos river staff photo



The modern art museum of fort Worth photo by Brian mcCord



Great for a wedding, reunion, business retreat or company event

Beautiful Venues Meeting Rooms Parks Centrally Located

City of Rockdale
1203 W. Cameron Rockdale, TX 76567 (512) 446-2511 Kelvin Knauf, City Manager
This ad funded by City of Rockdale HOT funds.

leddy’s Boots in san angelo staff photo



Texas economic development organizations
the following is a resource to links to select economic development organizations at the local, regional and state level in texas. it is not intended as a complete list of economic development organizations in the state but as a service to the supporters of this publication. A more comprehensive listing of economic development organizations can be found at, a data source and clearinghouse for commercial and industrial property listings in texas. the site includes an interactive mapping feature that highlights economic development organizations and their websites. the site’s clickable map layers also allow users to explore the geographic assets of texas, including transportation infrastructure, universities, and enterprise Zones. extensive proprietary data sets allow users to access detailed demographic, workforce, and consumer profiles for every city and county in the state, as well as for the immediate radius surrounding a given property.


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office of the Governor, economic development & Tourism www.texaswideopen Alice/Jim Wells county Amarillo economic development corp. Andrews economic development corp. Aransas county Athens economic development corp. bastrop economic development corp. beeville/bee county belton economic development corp. big Spring economic development corp. brooks city-base buda economic development corp. cameron industrial Foundation cedar hill economic development

city of Arlington city of cedar Park city of coppell economic-development city of emory development corp. city of huntsville city of kyle economic development city of La Porte city of Rockdale city of Rowlett city of Selma city of universal city corinth economic development corp. corpus christi Regional economic development corp. denison development Alliance deSoto economic development corp. dumas economic development

east Texas i-20 corridor Regional economic development el Paso Regional economic development corp. Garland economic development Partnership Georgetown economic development Greater Austin chamber of commerce Greater Waco chamber Greenville economic development harlingen economic development corp. henderson economic development corp. hereford economic development corp. ingleside Jacksboro economic development corp. Jacksonville development corp. Jasper economic development corp.


“A unique city that leads through providing planned growth, quality of life, a safe environment and a vision for the future.”

• Ranked by San Antonio Express-News, Bexar and adjacent counties’ fastest-growing community with 603% growth since 2000 • Located in Northeast Region of San Antonio just North of Loop 1604 along I-35 • Home to Retama Park • Home to the Forum Shopping Center with more than 120 stores and restaurants • Five minutes to Randolph Air Force Base

• 20 minutes to downtown San Antonio • 15 minutes to San Antonio International Airport • Low tax rate and ISO Rating • Plenty of undeveloped land

9375 Corporate Dr. Selma, Texas 78154 (210) 651-6661 tel (210) 651-0385 fax


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Johnson county economic development commission kilgore economic development corp. kingsville/kleberg county La Marque economic development corp. Lubbock economic development Alliance Mansfield economic development corp. McAllen economic development corp. Mckinney economic development corp. Mexia economic development corp. Midland development corp. Montague county navasota economic development northeast Partnership for economic development odessa development corp.

Palestine economic development Paris economic development corp. Pflugerville community development corp. Plainview hale county industrial Foundation Polk county economic & industrial development corp. Port Aransas Port corpus christi Refugio county Richardson chamber of commerce Rio South Texas economic council Robstown Area development commission Rockport-Fulton Rockwall economic development corp. Round Rock economic development San Antonio economic development Foundation

San Patricio economic development corp. Seguin economic development corp. economic_development Seminole economic development corp. Sherman economic development corp. Sugar Land economic development council Sulphur Springs economic development corp. Taylor economic development corp. Temple economic development corp. Terrell economic development corp. Texas city, Tx economicdevelopment.htm The colony economic development corp. Whitesboro economic development



eConomIC profIle
BusIness snapshoT
Texas has one of the lowest tax burdens in the united States, including no personal income tax. The state also has no state tax on property used for pollution control, goods in transit, and machinery and equipment utilized in manufacturing.


9.2 million
2010: 25,145,561 2000: 20,851,818 change since 2000: 20.6% nonagricultural employment (2009)

larGesT puBlIC CompanIes

$355 billion
exxonMobil, irving

2000-2009 nonagricultural employment growth percentage

$185 billion
conocoPhillips, houston

household InformaTIon

reTaIl sales

$125 billion
AT&T, dallas


Median age

$311.3 billion
Total retail sales (2007)

$86 billion
valero energy, San Antonio

45% 37% 12% 79% 25%

White (2010)

hispanic (2010)

$424.2 billion
Merchant wholesaler sales (2007)

$69 billion
Marathon oil, houston

$61 billion
dell, Round Rock

key IndusTrIes
Advanced Technology & Manufacturing Aerospace & defense biotech & Life Sciences information & computer Technology Petroleum Refining & chemical Products energy

black (2010)

$37 billion
Sysco, houston


$34 billion
enterprise Products Partners, houston

high school graduates

$26 billion
Plains All American Pipeline, houston

bachelor’s degree or higher

What’s online
for more in-depth demographic, statistical and community information on texas, go to and click on Demographics.

$22 billion
AMR (American Airlines), Fort Worth



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Livingthe ground up. green starts from
Living green is making sure the air in your home is healthy for your family to breathe. Test your home for radon and build radon-resistant. It's easy. That's living healthy and green.

Just call 866-730-green or visit


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maJor populaTIon CenTers
Texas is home to six of the 20 largest u.S. cities:

housInG CosT ComparIson


#4 #7


$988 million
Total personal income (2010)

u.S. Average


78.9 194.2

Per capita personal income (2009)

San Antonio

Median household income (2009)

#9 #14

new york

JoB CreaTIon
in 2010, Texas added more new jobs than any other state in the country.


el Paso


Texas jobs gained

Fort Worth


Louisiana Source:, for second quarter 2009

u.S. jobs gained



Texas has 380 airports and the second-largest state airport system in the nation, with 27 commercial airports in 24 major cities. eight airports provide international service. The state’s two largest airports are dallas-Fort Worth international (dFW) and George bush intercontinental in houston (iAh).

in transportation and distribution, according to Expansion Management magazine.

real esTaTe

Forty-four freight railroads operate on 14,982 miles of freight rail track in the state, carrying more than 384 million rail tons a year. Texas has access to Mexico’s industrial north with five gateways into Mexico by rail.

Median home price (2005-09)


home ownership rate

Gross sTaTe produCT

Texas has 13 deep-water ports with channels at least 30 feet deep, and 29 seaports line the Gulf coast. The Port of houston is ranked first in the nation in foreign waterborne commerce, and ranks second in the nation and sixth in the world in total tonnage. Three of the top seaports in the u.S. by cargo volume are located in Texas.

Texas has 306,404 miles of highways, more than any other state. The state has 29 u.S. ports of entry, providing direct access to the markets in Mexico and Latin America. Six Texas locations – houston, dallas, Fort Worth/ Arlington, el Paso, Laredo and San Antonio – are among the top metros

$1.29 trillion
Fiscal year 2010

CosT of lIvInG ComparIson

u.S. Average





new york

48 49


Source: CNBC


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TourIsm (2010)

$57.5 billion
Total direct travel spending

10/35 Economic Development Alliance Amarillo Economic Development Corporation Athens Economic Development Corporation Bastrop Economic Development Corporation Belton Economic Development Corporation Big Spring Texas Economic Development Brooks City-Base Buda Economic Development Corporation Cameron Industrial Foundation Cedar Hill Economic Development Corporation City of Arlington City of Cedar Park City of Emory Development Corporation City of Huntsville City of Kyle Economic Development City of La Porte City of Plainview City of Rockdale City of Rowlett City of Selma City of Universal City Corinth Economic Development Corporation Corpus Christi Regional Economic Development Corporation Denison Development Alliance DeSoto Economic Development Corporation Dumas Economic Development Corporation East Texas I-20 Corridor Regional Economic Development El Paso Regional Economic Development Corporation Garland Economic Development Partnership Georgetown Economic Development Greater Austin Chamber of Commerce Greater Waco Chamber Greenville Board of Development Harlingen Economic Development Corporation Henderson Economic Development Corporation Hereford Economic Development Corporation Jacksboro Economic and Development Corporation Jacksonville Development Corporation Jasper Economic Development Corporation Johnson County Economic Development Kilgore Economic Development Corporation La Marque Economic Development Corporation Lubbock Economic Development Alliance Mansfield Economic Development Corporation McAllen Economic Development Corporation McKinney Economic Development Corporation Mexia Economic Development Corporation Midland/Odessa/Andrews Montague County Navasota Economic Development Corporation Northeast Partnership Palestine Economic Development Paris Economic Development Corporation Pflugerville Community Development Corporation Polk County Economic & Industrial Development Corporation Richardson Chamber of Commerce Rio South Texas Economic Council Rockwall Economic Development Corporation Round Rock Economic Development Partnership San Antonio Economic Development Foundation Seagoville Economic Development Corporation Seminole Economic Development Corporation Sherman Economic Development Corporation Sugar Land Economic Development Sulphur Springs Economic Development Corporation Taylor Economic Development Corporation Temple Economic Development Corporation Terrell Economic Development Corporation Texas City, TX The City of Coppell The Colony Economic Development Corporation Valley International Airport Whitesboro Economic Development Corporation

visit our

Travel-supported jobs in Texas

198 million
estimated number of domestic visitors at Texas destinations

General InformaTIon aBouT Texas
capital: Austin Time zone: central Land area: 261,797 square miles Persons per square mile: 96

office of the Governor Economic Development & Tourism Division P.o. box 12428 Austin, Texas 78711 (512) 936-0100 office of the Governor P.o. box 12428 Austin, Tx 78711 (512) 463-2000 The official Website of the State of Texas




Through the Lens

Get the story Behind the photo
now that you’ve experienced Texas through our photos, see it through the eyes of our photographers. visit to view our exclusive photographers’ blog documenting what all went in to capturing those perfect moments.
from our phoTo BloG: Texas
south congress Avenue (soco) in Austin, texas, has been revitalized into a hip, trendy area lined with vintage shops, funky galleries and cool restaurants. it’s a great spot to get a glimpse of true Austin character. this is a view of the texas state capitol from soco.
posTed By BrIan mcCord

more online

see more favorite photos and read the stories behind the shots at


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