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Houston:
Trade and Technology

Once Houston's economy was almost totally dependent on oil and gas. Today, Texas' largest city (population 1.9 million) enjoys a diversified base of manufacturing and service industries. "Houston is a 'can-do' city that offers a tremendous environment to almost any type of business," says Pamela Lovett, president of the Greater Houston Partnership's Economic Development Division. "We're seeing relocations across the board, from corporate headquarters to international companies getting a foothold in the U.S. market."

The Houston area is expected to add more than 60,000 new jobs this year -- up from 47,000 in 1999 -- in industries like energy, aerospace, telecommunications, life sciences and information technology. "Houston's continued success in manufacturing contributes significantly to our vigorous economy. Nearly one in nine area residents works in manufacturing," says Lovett.

One new manufacturer is Japanese-owned SPF Corp. of America, which makes corrosion-resistant metal equipment. The company is establishing operations in northwest Houston and will employ more than 25 people initially. "Houston was the logical site for us to reach our customers," says SPF President and CEO Yosuhiro Senda. "With the Port of Houston nearby, easily accessible rail service, and an extensive highway system, our global market is more easily accessible."

Houston's business assets include its growing seaport and airport systems, its diverse work force, world-renowned medical facilities, and ready availability of office and industrial sites. "Our educational institutions are a real asset, helping to provide that initial and ongoing training that all employers are seeking," Lovett says. "Our cost of living here is also tremendous."

In fact, cost of living was one factor that made Houston the most popular city in the U.S. for relocating employees in 1999, according to a recent study performed by Cendant Mobility, one of the world's largest relocation companies. The report cited after-tax living costs 5 percent below the national average, housing costs 21 percent below the national median and the growing presence of global companies as prime factors in Houston's top ranking.

Developing DVD textbooks

The University of Texas Health Science Center San Antonio (UTHSCSA) Dental School is launched a new DVD textbook program beginning in the fall 2000 semester. New students will purchase a DVD that covers the entire curriculum -- textbooks, manuals, lecture slides, images and videos -- for all four years of dental school. The DVD, which weighs less than an ounce, will replace more than 400 pounds (18 kg.) and 2.2 million pages of books and manuals. The fully searchable DVD will be updated each semester. This new DVD approach in dental education was produced by Vital Source Technologies, a company founded by Dr. Todd Watkins, a former UTHSCSA professor. Six other U.S. dental schools also plan to adopt the new digital textbooks this fall. Japan-based SPF Corp. of America cited the Port of Houston (above), one of the busiest foreign-commerce ports in the nation, as key to its decision to locate a new manufacturing facility in Houston.

"For a larger metropolitan area, the booming Houston market offers homebuyers an opportunity to purchase more spacious homes with more amenities for substantially less than most other regions of the country," says Kevin J. Kelleher, president and CEO of Cendant Mobility.

One of the reasons for Houston's renewed prosperity is its strong global trading ties, especially with Mexico. More than 130 local firms have offices in Mexico, and there are 18 Mexican companies with offices in Houston.

George Bush Intercontinental Airport (IAH) handled 2.1 million passengers to and from Mexico last year, and there are 236 weekly non-stop passenger flights from IAH to Mexico. Mexico is also Houston's top seaborne trading partner with more than $3 billion in annual commerce. "Houston is the logical access point for Mexico because of the culture and physical proximity to the area, its economic and infrastructure base, and its international interest," says Miguel R. San Juan, president of the Greater Houston Partnership's World Trade Division.

Houston's office market is seeing increased demand from both international and domestic tenants, according to Worth Davis, director, Cushman & Wakefield's Houston office. "The overall trends are favorable, and the fundamentals are in place for a continued, steady real estate market," he says. "Houston has less than a 10 percent vacancy rate with the prospect of new construction. However, downtown has three buildings ready to go, waiting for tenants."

Houston's industrial market is seeing new construction in the northwest, the southwest and the IAH airport corridor, says B. Kelley Parker III, director, Cushman & Wakefield. "There are a lot of sites ready to go," he says. "Developers can put up a building quickly once a need arises."

Houston's largest business park is Cedar Crossing, a 15,000-acre (6,075-hectare) development recently purchased by a group of local investors who plan to spend $500 million over the next decade. "This is a unique property with both large and small tract options that will accommodate users for industrial manufacturing, plant sites, warehouses and distribution centers," says Charles Iupe, president of Fidinam Capital.