HOUSTON – (By Michelle Leigh Smith) – International companies have made substantial investments in Houston, a global trade hub whose export growth helped create approximately 347,000 new jobs over the past 14 years.
“There are now 1,000 foreign-owned companies and more than 300 greenfield projects in the Houston region since 2011, where foreign firms made significant investments over the last five years,” said Patrick Jankowski, Senior Vice President of Research for the Greater Houston Partnership. “Foreign firms represent 41 percent of all projects currently in the Partnership’s economic development pipeline.”
Jankowski shared these observations during the recent “The State of Houston’s Global Economy” event at the Hilton Post Oak.
Since 2011, companies from roughly 45 countries have acquired businesses in Houston. Brookings Institution data show that foreign-owned firms account for 5 percent of all U.S. jobs, 7.7 percent of total compensation nationally, and in Houston they represent about 20 percent of research and development activity.
What explains Houston’s success? “Part of it is that growth feeds on itself,” Jankowski explained. “Once a few foreign firms establish a presence, they attract more. Companies tend to follow each other and see that success in Houston is possible.”
Air connectivity plays a vital role. George Bush Intercontinental Airport (IAH) is the only North American airport with nonstop service to all six inhabited continents and handles more than 4,900 scheduled and charter flights each week.
Houston’s airports connect to 70 international markets and host 19 foreign flag carriers, serving 11.6 million passengers in 2016. For context, New York’s JFK serves 125 international markets and Miami International connects to 106.
Equally important are intermodal and cargo-handling facilities. IAH features a 120-acre cargo complex with over 600,000 square feet of on-airport warehouse space and parking for 20 wide-body freighters. The airport provides refrigerated storage, plant and animal inspection facilities, and on-site fumigation, enabling shippers to move temperature-sensitive goods quickly and maintain their value.
Port infrastructure has also been upgraded, including new Super Post-Panamax wharf cranes and other landside and waterside improvements. Port Houston is the fastest-growing U.S. port for loaded import containers from East Asia. Rising exports of plastic resin, a petrochemical byproduct, signal continued strength for Houston’s trade future.
Trade data underline the city’s momentum. WiserTrade reports exports valued at $93 billion, and the Brookings Institution notes Houston’s exports have increased 178 percent since 2003, supporting 347,000 jobs.
WiserTrade shows exports up 19 percent year-to-date, ranking Houston fifth among U.S. export gateways behind New York, Los Angeles, Laredo and Detroit. The U.S. International Trade Administration places Houston first, ahead of New York and Los Angeles. Crude oil and refined petroleum products make up 27 percent of exports, chemicals 14.6 percent, plastics, rubber and resins 10.2 percent, oil and gas extraction 7.3 percent, and mining machinery 6.1 percent.
To emphasize the breadth of Houston’s reach, Jankowski noted it’s easier to name the few places where Houston does not export certain products. While some remote or tiny jurisdictions—such as Vatican City, East Timor, Nauru, Kiribati, Christmas Island, North Korea, Norfolk Island or Vanuatu—may not receive Houston-made polymers, toluene or ethylene, the reality is that Houston-produced plastics and chemicals are shipped to markets across the globe.
May 30, 2017 Realty News Report Copyright 2017