< PreviousT E X A S E C O N O MI C DE V E L O P M E N T G U I DE O N L I N E I N F O RMA T I O NOnlineWhat’s on www.siteselection.com/cc/texasGrowth DriversBuilding on 10 years of momentum, Texas’ favorable business climate is only getting hotter.Interview with Tilman FertittaThe owner of the NBA’s Houston Rockets credits Texas with his massive business successes.Region ProfilesExplore all six of Texas’ unique and prosperous regions to see how business grows across the Lone Star State and around the globe.Texas Metros & FDIMore than 1,500 foreign companies with operations in Texas are responsible for more than 597,000 jobs in the Lone Star State. That’s more than the entire population of Wyoming.Sports and RecThe North Dallas suburb of Frisco is quickly becoming known as “Sports City USA” thanks to an influx of sports companies like PGA of America.Corporate HQsFrom Fortune 500 to Forbes Global 2000, major companies are making the move to their new Texas home. T E X A S E C O N O MI C DE V E L O P M E N T G U I DEB U SIN E S S C L I M A T E O V E R V IE WWHATGOBIG IN TEXASREALLYMEANSby RON STARNERhe phrase, “Go Big in Texas,” means many things to many people. What you may not know, however, is exactly how “big” the economy of Texas actually is.If Texas were an independent nation, it would rank as the 10th largest economy in the world based on GDP — ahead of Australia, Mexico, Spain, Russia and others.As such, Texas boasts an economy that is integral to world trade and, thus, to America and its leading companies. Texas ranks as the undisputed national leader in exports, a title the state has held for 17 straight years. Texas exported $315 billion in goods to destination all around the globe in 2018. Mexico, Canada, China, Japan and Republic of Korea are its top trade partners.Texas also boasts 48 of the Fortune 500 headquarters. Among them are ExxonMobil, AT&T, Sysco and American Airlines. Texas is also home to more than 1,400 foreign-based companies such as Toyota, BAE Systems, Siemens and Shell Oil, as well as 2.4 million small businesses.What makes all this possible is the fact that Texas employs the country’s second-largest TGOT E X A S E C O N O MI C DE V E L O P M E N T G U I DE civilian workforce, at 14 million people. Top-notch schools feed a steady pipeline of talent into the state, which also acts as a magnet to a ract the best and brightest workers from around the nation and abroad.But “going big” doesn’t stop there, because Texas is not done growing. According to economist Dr. Ray Perryman, the Texas economy added nearly 290,000 jobs last year. “The state is well positioned to remain a growth leader,” he says. “A major source of expansion continues to be the energy sector, where we’ve seen strong gains over the past year. I expect oil and natural gas exploration and development to remain a key contributor to the state’s expansion. Recent trade agreements are also important to the Texas economy and the future outlook, as are national conditions. On balance, I think the state economy is set for strong growth.”Want to get in on that action? Consider this: Perryman’s latest projections call for expansion in real gross product at a 4.28 percent rate through the end of 2019. “I’m predicting job gains Dallas skyline20 T E X A S E C O N O MI C DE V E L O P M E N T G U I DEat a 2.11 percent pace through 2019, with continued healthy expansion the following year. These levels are notably higher than what I’m projecting for the nation.”Growth like this does not occur in a vacuum either. It happens because specific policies are enacted to not only make it possible, but to enable Texas to outperform others. “Texas has made strides in funding for infrastructure and in keeping economic development strong and proactive,” says Perryman. “Gov. Abbott has had a lot to work with as far as the business climate, with many factors combining to encourage growth, including the energy revolution.”Dean Barber, economic development and corporate location consultant and principal of Barber Business Advisors LLC in Dallas, concurs. “Texas has an aura about it and will continue to have an aura about it,” he says. “Texas was an independent country for 10 years, and it is still in the DNA of the state and the people who live here. A New York Times writer once said, ‘You don’t move into Texas. Texas moves into you.’”Perhaps that’s why Chief Executive Magazine has ranked Texas the No. 1 business environment in the nation for the past 15 years in a row, and why Site Selection Magazine has named Texas the winner of the publication’s annual Governor’s Cup — for most corporate facility projects — a record seven years in a row and eight of the past 10.“The fundamentals of Texas are an underlying culture of confidence. People here do feel that Texas is special; it is a self-fulfilling prophecy,” notes Barber. “The business climate is pro-business, and the perception of Texas among site selectors and corporate executives as a place to do business is quite good. It is a very dynamic state and the second-largest economy in the U.S. If you look at the top 15 fastest-growing cities in America, we have five of them.”The outlook is for this trend to continue, says Perryman. “The oil and gas sector is likely to continue to see substantial growth,” he notes. “Changes in the industry such as improved technologies for exploration and production are working to make it less cyclical with greater recovery from drilling investments than were possible in the past. I think we’ll see a more sustained growth pattern.”In other words, don’t look for the slogan “Go Big in Texas” to lose its meaning anytime soon. If anything, it may quickly change to “Go Bigger in Texas.” “The state is well positioned to remain a growth leader.”– Dr. Ray Perryman, EconomistChief Executive Magazine has named Texas the No. 1 place to do business in Americaa record years in a row. T E X A S E C O N O MI C DE V E L O P M E N T G U I DEegendary Dallas Cowboys cornerback and Pro Football Hall of Famer Deion Sanders once said, “I expect to be great. I expect to do what hasn’t been done.”He then went out and backed up those famous words by proving himself to be the greatest cover corner of all time on the gridiron. The same could be said of the state for which he plied his trade: Texas. When it comes to superlatives, no other state in the union holds a candle to the Lone Star State.by RON STARNERLB R A GG I N G RIG H T SPhoto: Getty Images T E X A S E C O N O MI C DE V E L O P M E N T G U I DETexas Leads U.S. in DiversityWhat is the most diverse place in America? Personal fi nance website WalletHub says it’s Texas.According to a new study published by WalletHub in April, Houston now ranks as the most diverse city in the U.S., and several other cities in Texas score highly as well. The analysis was based on socioeconomic, cultural, economic, household and religious diversity of specifi c cities throughout the country.Houston was ranked No. 2 in 2018 and No. 3 in 2017. Of the 501 places studied, Dallas and Arlington also made the top 10. Dallas ranks fi h, while Arlington ranks 9th. Other Texas cities ranking highly on the list include Fort Worth, Plano, San Antonio, Corpus Christi, El Paso, Laredo and Austin.Houston earned its highest score in cultural diversity, ranking No. 29 in the country. Cultural diversity is based on diversity in race, ethnicity, Texas claimed the No. 1 spot in CNBC’s annual Top States for Business ranking for 2018.Texas is the No. 1exporter in the nation, with $315 billioni n 2 01 8 , according to BEA.Texas leads the nation in high-tech exports, at $47.9 billion, and has done so for6 straight years.Downtown Dallas, TexasPhoto by Heather OvermanNext >