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Download the Perryman Report ENERGY AND BEYOND!! An analysis of economic development strategy and opportunities for long-term prosperity in the Odessa-Ector County Area February 2017 THE PERRYMAN GROUP 254.751.9595 [email protected] www.PerrymanGroup.com Economic Development Strategy in the Odessa-Ector County Area i Contents Executive Summary ..................................................................................................... iv Economic Forecast ................................................................................................................................................ iv Occupational Forecast......................................................................................................................................... iv Target Industries ...................................................................................................................................................... v Strengths: Factors which could Enhance Future Growth .................................................................... vii Weaknesses: Factors which could Limit Future Growth ..................................................................... vii Recommendations ............................................................................................................................................... viii Odessa’s Economic Development Efforts ................................................................................................... ix Conclusion .................................................................................................................................................................. x Introduction ..................................................................................................................... 2 Scope of The Perryman Group’s Analysis ............................................................................. 2 Current Economic and Demographic Situation ................................................ 5 Recent Population and Employment Trends ....................................................................... 5 Recent Economic Performance and Employment by Industry .................................... 8 Energy Economy .......................................................................................................... 11 Benefits and Challenges of an Energy Economy ............................................................. 11 Current Status of Public and Higher Education ............................................. 14 Ector County Independent School District ....................................................................... 14 The University of Texas of the Permian Basin ................................................................. 23 Odessa College ............................................................................................................................. 25 Midland College ............................................................................................................................ 27 Texas Tech University Health Sciences Center .............................................................. 27 Baseline Economic Forecast ................................................................................... 30 Economic Outlook for the Odessa MSA ............................................................................. 30 Growth in Employment by Sector .................................................................................................................. 31 Definitions of Economic Terms .............................................................................................. 32 Economic Development Strategy in the Odessa-Ector County Area ii Definitions of Economic Sectors ............................................................................................ 32 Changing Employment Composition ............................................................................................................ 33 Growth in Output by Sector ............................................................................................................................. 33 Changing Output Composition ....................................................................................................................... 34 Economic Outlook for the Permian Basin Region .......................................................... 34 Growth in Employment by Sector .................................................................................................................. 35 Changing Employment Composition ............................................................................................................ 36 Growth in Output by Sector ............................................................................................................................. 36 Changing Output Composition ....................................................................................................................... 37 Employment by Occupation ................................................................................... 39 Current and Projected Occupational Overview ............................................................. 39 Odessa MSA ............................................................................................................................................................ 40 Permian Basin Region ......................................................................................................................................... 41 Total Demand for Workers ...................................................................................................... 42 Odessa MSA ............................................................................................................................................................ 43 Permian Basin Region ......................................................................................................................................... 45 Total Demand for Workers by Level of Education ......................................................... 47 Target Industry Analysis .......................................................................................... 51 Rationale for Target Industries .............................................................................................. 51 Growth Industries ........................................................................................................................ 53 Target Industry Groups ............................................................................................................. 55 Center for Energy ................................................................................................................................................. 55 Center for Health Care and Biomedicine ................................................................................................... 58 Center for Distribution and Logistics ........................................................................................................... 60 New Directions: Advanced Industries ......................................................................................................... 60 Collateral Industries ............................................................................................................................................ 63 Assessment of Trends Affecting Growth Potential ...................................... 66 Strengths: Factors which could Enhance Future Growth ........................................... 66 Entertainment Options ...................................................................................................................................... 66 Downtown Redevelopment ............................................................................................................................. 67 Mexico Initiative .................................................................................................................................................... 68 Economic Development Strategy in the Odessa-Ector County Area iii Weaknesses: Factors which could Limit Future Growth ............................................ 72 Ector County ISD and Education Issues ...................................................................................................... 72 Cyclical Economy Issues .................................................................................................................................... 72 Other Challenges .................................................................................................................................................. 73 Recommendations ...................................................................................................... 75 Support education at all levels, from early childhood through higher education ...................... 75 Continue efforts to form regional alliances to solve pressing problems ....................................... 76 Ensure the sufficiency of fiscal resources ................................................................................................... 76 Consider altering the sales tax for economic development ................................................................ 76 Enhance the role of energy companies in the community ................................................................... 77 Continue to promote Odessa on a local, regional, national, and international basis ..............
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