Austin Region Overview April 2020 International companies in Austin Opportunity Austin Opportunity Austin
to Dallas-Fort Worth
Regional economic development initiative Targeted industries: ▪ International ▪ Corporate HQs/Regional offices ▪ Financial services ▪ Advanced/General manufacturing ▪ Cleantech ▪ Data management ▪ Life sciences/Healthtech to Houston ▪ Defense/AI/VR to San Antonio Relocations 2004 - 2019 628 companies | 65,973 jobs
90 Companies Jobs 18,000 17,000 80 OA 3.0 2014-2018 16,000 264 companies 15,000 70 14,000 OA 2.0 2009-2013 64 30,766 jobs 13,000 OA 2004-2008 161 companies 58 60 53 12,000 145 companies 19,632 jobs 50 50 51 11,000 50 10,917 jobs 46 10,000 9,000 9,424 40 36 8,000 34 31 8,380 31 31 29 7,000 30 26 7,047 6,000 21 5,000 20 17 5,131 5,098 4,000 4,814 4,658 3,878 3,779 3,000 10 3,125 3,128 3,050 2,000 547 1,000 1,512 1,282 1,120 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Relocation origins 2004-2019
628 relocations 2004 – 2019 Austin, Texas Region Strategically Positioned Central time zone Central location in Texas 80% of the population lives Austin to Dallas: within the Texas 195 miles (3 hours) Triangle of Dallas, Houston & San Antonio
Austin to San Antonio: 80 miles (1 hour 15 min) Austin to Houston: 165 miles (2 hours, 45 min) Nonstop jet destinations As of January 2020 AeroMexico Air Canada Alaska Air Allegiant American British Airways Delta Frontier JetBlue KLM Royal Dutch Lufthansa Norwegian Southwest Spirit Air Sun Country United Vacation Express WestJet ABIA was ranked No. 1 in North America and No. 2 in the world for its size class by Airports Council International Austin, Texas Region About Us Austin Region facts
Austin: “The Human Capital” ▪ Capital of the State of Texas ▪ 11th largest U.S. city ▪ MSA population: 2.2 million ▪ 150 new residents daily on avg. ▪ Fastest growing among the top 50 metros ▪ Labor force 1.2 million And more facts Median age 35 years (38 nationally) 33% between 25 & 44 (26% nationally)
47% with at least a bachelor’s degree (33% nationally) Why Austin region?
Combination of Creativity & Commerce, Innovation & Affordability
▪ Attractive to talent ▪ Unique in the U.S. ▪ Center of innovation ▪ Affordable cost of living ▪ Pro-business environment ▪ Outstanding quality of life Fastest growing among the top 50 metro areas
Population Growth 2010-2019 Rank 2019 Difference Percent ch. .Austin MSA 2,227,083 510,760 29.8% 1 .Raleigh MSA 1,390,785 260,292 23.0 2 .Orlando MSA 2,608,147 473,748 22.2 3 .Houston MSA 7,066,141 1,145,654 19.4 4 .San Antonio MSA 2,550,960 408,440 19.1 5 .Dallas MSA 7,573,136 1,206,599 19.0 6 .Phoenix MSA 4,948,203 755,074 18.0 7 .Charlotte MSA 2,636,883 392,920 17.5 8 .Nashville MSA 1,934,317 288,134 17.5 9 .Denver MSA 2,967,239 423,631 16.7 10 Austin is the 29th largest metro based on total population. Source: U.S. Census Bureau. Population growth 2009-2019
32.4%
16.9%
6.9%
Austin MSA Texas United States
Source: U.S. Census Bureau, Population Estimates. Population growth
5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 Source: U.S. Census Bureau & Texas’ Office of the State Demographer. Net migration 2010-2019 per 10,000 population 50 largest metros 1,600 Domestic International 1,200
800
400
-
(400)
(800)
Dallas
Miami
Tampa
Seattle
Boston
Detroit
Buffalo
Denver
Atlanta
Raleigh
AUSTIN
Chicago
Phoenix
Orlando
St. Louis St.
San Jose San
Houston
Portland
Hartford
Nashville
Riverside
Louisville
Charlotte
Memphis
New York New
Las Vegas Las
Cleveland
Baltimore
San Diego San
Cincinnati
Columbus
Richmond
Pittsburgh
Milwaukee
Providence
Kansas City Kansas
Los Angeles Los
Jacksonville
Sacramento
Washington
Indianapolis
San Antonio San
Birmingham
Philadelphia
Minneapolis
New Orleans New
Salt Lake City Lake Salt
San Francisco San
Virginia Beach Virginia Oklahoma City Oklahoma Source: U.S. Census Bureau, Population Estimates. STEM occupations concentration 2019, 50 largest metros
Total Non-STEM STEM STEM Rank Employment Occupations Occupations % of Total San Jose MSA 1,140,870 900,980 239,890 21.0% 1 Seattle MSA 2,020,930 1,778,850 242,080 12.0 2 Washington MSA 3,179,340 2,799,130 380,210 12.0 3 San Francisco MSA 2,472,110 2,178,860 293,250 11.9 4 Raleigh MSA 650,330 573,730 76,600 11.8 5 Austin MSA 1,073,350 953,650 119,700 11.2 6 Boston MSA 2,798,000 2,498,020 299,980 10.7 7 Denver MSA 1,513,360 1,365,780 147,580 9.8 8 Detroit MSA 1,980,730 1,793,050 187,680 9.5 9 San Diego MSA 1,494,940 1,353,510 141,430 9.5 10 United States ̶ ̶ ̶ 6.4 ̶ STEM: Science, technology, engineering & mathematics Source: U.S. Bureau of Labor Statistics, Occupational Employment Statistics. Cost of Living Index Year ending 2019
Index, U.S.=100 0 50 100 150 200 250 Phoenix Austin U.S. Atlanta Denver Chicago Los Angeles San Francisco NY-Manhattan
Source: Council for Community & Economic Research. Austin, Texas Region Good for Business Friendly & vital business environment
▪ Major publications have ranked Texas as having the Best Business Climate in the U.S. ▪ Per capita state and local tax burden is low (32nd) ▪ Per capita state and local taxes are 18% lower than taxes nationally ▪ Political climate focuses on maintaining a pro-business environment ▪ Right-to-work state ▪ Texas’ scale is huge ▪ $1.9 trillion gross state product in 2019 ▪ World’s 11th largest economy ▪ Nearly 2.5 million jobs added over the last decade ▪ Top exporting state for the last 18 years Fastest growing economy: Percent change in real GDP 2018-2019
4.4%
Source: U.S. Bureau of Economic Analysis. Friendly business cost environment
California New York Texas
State & Local Taxes Per Capita (2017) $6,170 $9,073 $4,161 0.75% Corporate Tax Rate (2020) 8.84% 6.50% of adj. gross receipts Individual Income Tax Rate (2020) 12.30% 8.82% None Unemployment Insurance (2019) Average employer tax rate as a % of taxable wages 4.17% 2.15% 1.93% as a % of total wages 0.55% 0.38% 0.37% Workers’ Compensation (2017) $1.83 $1.46 $0.54 Employer costs per $100 of covered wages Employment-Based Health Insurance (2018) $6,542 $7,741 $6,589 Single Premium 148.9 (LA) 247.7 99.8 Cost of Living Index, U.S.=100 (2019) 200.7 (SF) (Manhattan) (Austin) Low tax burden
▪ No personal or corporate income tax ▪ One of the lowest state and local tax burdens in the nation • 32nd in taxes paid per capita • 36th in taxes paid per $1,000 of personal income
State & local taxes per capita 2017
New Jersey $6,978
New York $9,073
Texas $4,161
United States $5,073
Source: U.S. Census Bureau. Median home price Seasonally adjusted, March 2020 Austin MSA Los Angeles MDiv New York MDiv San Francisco MDiv $2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
Selection represents the 6 largest reported cities in each metro. Source: Zillow Home Value Index. Major employers
Fortune 500 HQ Largest private sector employers
Dell Technologies 13,000 General Motors 2,300 St. David's HealthCare 10,665 National Instruments 2,216 Ascension Seton 10,513 Advanced Micro Devices 2,200 Samsung Austin Semiconductor 8,935 Visa 1,955 Apple 7,000 Vrbo 1,900 IBM Corp. 6,000 Progressive Insurance Co. 1,809 NXP Semiconductors 4,000 Intel Corp. 1,700 Amazon 3,800 Flex 1,600 Applied Materials 3,731 ICU Medical 1,500 Accenture 3,400 Facebook 1,200 AT&T 2,800 Pharmaceutical Product Dev. 1,200 Charles Schwab 2,700 Cirrus Logic 1,100 Keller Williams Realty 2,609 Google 1,100 Whole Foods Market 2,600 Hewlett-Packard Enterprise 1,100 Indeed 2,500 Software House International 1,094 Oracle Corp. 2,500 Clinical Pathology Laboratories 1,003 Colleges & universities within 60 miles Fall 2018 enrollments 4-year institutions The University of Texas — Austin 51,832 Texas State University — San Marcos & Round Rock 38,644 St. Edward’s University — Austin 4,301 University of Mary Hardin-Baylor — Belton 3,888 Concordia University — Austin 2,568 Texas A&M Central Texas — Killeen & Hutto 2,464 Texas Lutheran University — Seguin 1,443 Southwestern University — Georgetown 1,434 Huston-Tillotson College — Austin 1,119 Western Governors University — Austin 1,111 Community colleges Austin Community College — Locations throughout metro 40,799 Central Texas College — Killeen 16,073 Temple College — Hutto, Temple & Taylor 4,911 Austin Region Total* 173,856 TOTAL WITHIN 100 MILES 458,473 *Region total includes enrollments for some 4-year and 2-year schools not listed separately. Source: U.S. National Center for Education Statistics. What areas offer the greatest opportunities for prosperity & innovation? 1. San Francisco, CA The Milken Institute’s Best-Performing Cities Index 2. Provo, UT measures each metro area’s economic performance using outcomes-based metrics such as job creation, 3. Austin, TX wage gains, and technological developments. 4. Reno, NV 5. San Jose, CA Growth through tech is the reigning theme across 6. Orlando, FL America. Tech hubs such as Austin, have leveraged 7. Boise City, ID their educated workforces and competitive business climates to generate growth. 8. Seattle, WA 9. Dallas, TX A remarkably consistent high performer, the Austin 10. Palm Bay, FL metro has now claimed a spot in the Top 5 for nine 11. Raleigh, NC of the last ten Best-Performing Cities indexes. 12. Phoenix, NV Austin’s strength in a diverse set of industries has 13. Charleston, SC helped the region generate growth at different points 14. Nashville, TN of the business cycle. 15. Spartanburg, SC Source: Milken Institute, Best-Performing Cities 2020, Jan. 2020. Austin garnered No. 1 in 2019, 2018 and 2017. Austin Region in the news
▪ Austin is the No. 3 Best-Performing City in annual assessment of Where America’s Jobs are Created & Sustained. (Milken Institute, 2/26/20) ▪ Austin is the Best U.S. City for Starting a Business according to Inc.’s 2020 Surge Cities Index. (Inc., Winter/20) ▪ Austin is No. 2 on ranking of the Hottest Startup Cities in America. (Inc., 8/14/19) ▪ Austin’s is the Top Startup Ecosystem in the U.S. (Business Facilities, 7/30/19) ▪ Austin is No. 6 on “Talent Attraction Scorecard” ranking of North American markets’ depth, vitality, & attractiveness to companies seeking tech talent & tech workers seeking employment. (CBRE, 7/16/19) ▪ Austin is one of the top 20 U.S. metros for R&D performed by businesses. (U.S. National Science Foundation, 6/20/19) ▪ Austin is the No. 1 city Where Tech Professionals Want to Put Down Roots. (CompTIA, 6/19/19) ▪ Annual “American Cities of the Future” rankings place Austin 8th for business friendliness & 9th for human capital & lifestyle. (fDi Intelligence, 6/10/19) ▪ Austin will be the fastest growing large metro economy through 2024. (IHS Markit, 4/24/19) ▪ Austin’s workforce is the 6th most concentrated in STEM occupations among large U.S. metros. (U.S. Bureau of Labor Statistics, 3/29/19) ▪ Austin is one of the top 10 Global Technology Innovation Hubs. (KPMG, 2/19/19) Texas in the news
▪ Texas has the nation’s Best Corporate Tax Environment. (Area Development, 9/10/19) ▪ Texas tops Global Groundwork Index ranking of U.S. states for infrastructure investment. (Site Selection, 9/19) ▪ Texas has the 4th Best Business Climate. (Business Facilities, 7/24/19) ▪ Texas is No. 2 on America’s Top States for Business ranking. (CNBC, 7/10/19) ▪ Texas has the most entrepreneur-friendly policy environment and the best state tax system. (Small Business & Entrepreneurship Council, 5/6/19) ▪ Texas is the Best State for Business for the 15th consecutive year. (Chief Executive, 5/6/19) ▪ Texas is the Top-Ranked State for Firm Relocations. (Federal Reserve Bank of Dallas, 12/21/18) ▪ Texas is No. 3 on annual Best States for Business ranking. (Forbes, 11/28/18) ▪ Texas is the No. 3 State Business Climate, based on a survey of corporate site selectors, economic development project activity, and business tax climate. (Site Selection, 11/18) ▪ Texas is the No. 2 State for Doing Business based on annual survey of site selection consultants. (Area Development, Q3/18) ▪ Texas offers the Most Favorable Business Climate for the 7th consecutive year according to survey of C-suite executives. (Development Counsellors International, 9/18/17) Austin, Texas Region Quality of Life A premier quality of life
Unparalleled outdoor recreation, culture, music, sports, golf, shopping ▪ 300 days of sunshine ▪ Miles of cycling and running trails, rock climbing, river rafting, and kayaking ▪ Best golf courses in Texas ▪ Sports & Recreation ▪ Music, Festivals, Film Geography
▪ Gorgeous natural setting on the Colorado River ▪ Elevations from 400 to 1,000 feet above sea level ▪ Rolling hills topography to the west and flatter to the east ▪ Low incidence of natural disasters Sports
Circuit of the Americas Astros AAA Spurs G-League
Austin FC Austin Bold Texas Stars Music/film
Film Music Austin Film Festival Live Music
SXSW Austin City Limits Festival Austin City Limits Live Culture/entertainment
Resident Symphony Resident Opera Resident Ballet
Blanton Museum of Art LBJ Presidential Library Bob Bullock Museum Recreation
Barton Creek Lady Bird Johnson Crenshaw Cliffside Wildflower Center Running
River Place Cycling Disc Golf Tom Kite/Roy Bechtol Recreation
Sailing Barton Springs ZipLine
River Tubing Kayaking Kite Festival Shopping
▪ The Domain ▪ 1.8+ million SF of luxury shopping, eateries, bars & condos ▪ Downtown Austin ▪ Warehouse District/Seaholm ▪ Rainey Street District ▪ San Marcos Outlets ▪ 1.5+ million SF of shopping Contact us
Leigh Christie Senior VP, Global Technology & Innovation +1 512.322.5642 [email protected]
Roland Peña VP, Economic Development +1 512.322.5684 direct or +1 512.638.1613 mobile [email protected]
www.austinchamber.com