ECONOMY
Sustainability dominates discussion at annual Economic Outlook Conference
ECONOMIC TRENDS
BY ANDREWCHRISTMAN AND BEN THOMPSON
ONGOING GROWTH IN THE REGION Laura Lea Palmer, vice president of business retention and expansion for The Woodlands Area Economic Development Partnership, said The Woodlands added more than 1,000 jobs in 2018, part of a 15-year trend of job growth in the township. Palmer said in 2004, The Woodlands area was home to 47 major employers with around 17,200 nonretail jobs. This year, 73 major com- panies now staff more than 38,000 jobs in the area, she said. “The Woodlands has been building a sustainable model really, truly since its inception,” she said. “Many of the com- panies that we talked about and many of the ones that are represented here today are the reason that this commu- nity has built that kind of sustainable growth, and I think we will see that growth continue into the future.” The Woodlands’ major employment sectors are now energy, comprising 27 percent of the township’s jobs; health care, which makes up 24 percent; and education and professional services, which each represent 16 percent of the market, she said. In 2004, professional services was the largest employment sector in The Woodlands with 23 percent of the jobs, followed by energy at 22 percent, edu- cation at 17 percent and health care at 15 percent, Palmer said. Despite recent growth, Jesse B. Thompson III, a senior business econo- mist with the Houston Branch Federal Reserve Bank of Dallas, said he expects a modest economic course correction to play out around the Houston metro region and likely the state this year following a strong 2018. “Less wind in our sails means that we’re going to go from a slightly above-average year … to a slightly below-average year,” he said. Thompson said 2018’s growth will likely be a continuing trend but at a reduced pace this year. He cited the drop in oil prices through the winter, the decline of chemical sector con- struction, a tighter labor market and forecasts of a slowing in both the U.S. and international economies. “One of the key reasons that we know things are slowing down is because we get feedback from y’all,” Thompson said. “There are fewer tailwinds ahead.”
Since 2004, energy and health care have become the largest industries in The Woodlands, representing 27 percent and 24 percent of the jobs, respectively. Professional services and education sectors represent a smaller section of employment in The Woodlands since 2004. EMPLOYMENT SECTORS IN THE WOODLANDS
Following a year of growth and devel- opment in The Woodlands area, long- term sustainability was the main focus at The Woodlands Area Chamber of Commerce’s annual Economic Outlook Conference Feb. 8. Gordy Bunch, chairman of The Woodlands Township board of direc- tors, said increasing hotel tax revenue and lowering property tax rates in The Woodlands helped to reduce debt and improve savings in the township. “THEWOODLANDS HAS BEEN BUILDING A SUSTAINABLE MODEL REALLY, TRULY SINCE ITS INCEPTION. ... MANY OF THE COMPANIES THATWE TALKED ABOUT ANDMANY OF THE ONES THAT ARE REPRESENTED HERE TODAY ARE THE REASON THAT THIS COMMUNITY HAS BUILT THAT KIND OF SUSTAINABLE GROWTH.” —LAURA LEA PALMER, VICE PRESIDENT OF BUSINESS RETENTION AND EXPANSION, THE WOODLANDS AREA ECONOMIC DEVELOPMENT PARTNERSHIP “The current financial condition of the township is strong,” Bunch said. “We still maintain excellent ratings, and more importantly, we maintain excellent reserves.” Bunch said the township is now focused on attracting tourism and gen- erating revenue from hotels and visitor spending. The Woodlands continues to advertise itself as a destination, he said, adding around 4,100 people are now employed in the tourism industry within The Woodlands. Visitors spent around $371.7 million in The Wood- lands in 2018, Bunch said. One of the main issues on the horizon in The Woodlands will be the town- ship’s ongoing incorporation study, Bunch said. “We know that this is a complicated issue that takes a lot of interaction with our community,” he said. “I wouldn’t be concerned that this will be on a ballot any time soon. We are still getting through the details, and we want to have additional public forums and opportunities to meet with our constit- uents to make sure they’re fully aware and understand the process.”
2004 2019 KEY:
27%
24%
23%
22%
17% 16%
16%
15%
6% 5%
6%
5%
4%
1%
3%
1% 2% 2% 3% 2%
SOURCE:THEWOODLANDSAREAECONOMICDEVELOPMENTPARTNERSHIP/COMMUNITY IMPACTNEWSPAPER
LARGEST EMPLOYERS IN THE WOODLANDS AREA Conroe ISD is the largest single employer in The Woodlands area, followed by energy company Anadarko Petroleum Corp. and Memorial Hermann The Woodlands Medical Center.
18.4% Anadarko Petroleum Corporation
20.7% Conroe ISD
4.8% Woodforest National Bank
2
1
12.6% Memorial Hermann The Woodlands Medical Center
5% Texas Children’s Hospital The Woodlands 5.6% Lone Star College - Montgomery 6.1% Houston Methodist The Woodlands Hospital
9 10
3
9.3% Alight Solutions
8
9.2% ExxonMobil
4
7
5
8.3% CHI St. Luke’s Health - The Woodlands Hospital
6
SOURCE:THEWOODLANDSAREAECONOMICDEVELOPMENTPARTNERSHIP/COMMUNITY IMPACTNEWSPAPER
HOUSTON JOB GROWTH BY SECTOR IN 2018 Manufacturing and construction led job growth in the Greater Houston area in 2018, while little growth occurred in government, trade, transportation and utilities. Within the Greater Houston area,, job growth over the past year was 2.4 percent.
PERCENTAGE GROWTH FROM DEC. 2017-DEC. 2018
2.4%
Professional & business services Trade, transportation & utilities TOTAL JOB GROWTH
1.1%
2.4%
.5%
Government
3.6%
Education & health service
2.1%
Leisure & hospitality
7.3%
Construction Manufacturing
4.9%
2.9%
Mining & logging Other services Financial activities
3.4%
2.6%
SOURCE:FEDERALRESERVEBANKOFDALLAS/COMMUNITY IMPACTNEWSPAPER
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The Woodlands edition • March 2019
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