Greater Houston Partnership
Transcription
Greater Houston Partnership
“The Houston region’s economic future is tied to its ability to attract companies to locate, expand and maintain their operations here, and for Houston area companies to sell their products and services abroad and / or to operate overseas.” 2005 – 2015 Strategic Plan Chamber of Commerce • Economic Development • World Trade Overview 5 Mission 12 Mission Directives 17 Vision 1 21 Vision 2 Vision 3 Vision 4 Appendix 31 41 49 55 Strategic Plan Table of Contents 2005 – 2015 Strategic Plan “The North Star has traditionally been used to guide navigation. The Star itself is not fixed…therefore, the North Star reflects whichever star is furthest to the north.” —Janice Karin Overview The New North Star for the Coming Decade 2005 – 2015 A True Synthesis of Roles It has been 14 years since the Greater Houston Partnership developed a strategic plan. During that time period, the Partnership has evolved as the organizational umbrella for what had been three distinct entities — Houston Chamber of Commerce, Houston Economic Development Council and the Houston World Trade Association. This 10-year Greater Houston Partnership strategic plan outlines a bold, but achievable vision that consolidates Partnership roles and embraces one compelling theme — Building Economic Prosperity in the Houston Region. The 10-year strategic plan becomes the “North Star.” This 10-year strategic plan requires an infusion of effort, consolidation, collaboration and focus on industries that will make Houston a business magnet, thus serving as the “North Star” to guide business development. Continued and sustained development of these industries will bring new jobs, establish new areas of leadership and attract new talent. This, in turn, will drive sustained economic prosperity in the 10-county region. The plan serves the 10-county region. This plan embraces new ideas. It identifies the Partnership’s job as bringing economic prosperity to the 10-county region. Thus, when referenced, Houston is interpreted as encompassing and being the 10-county region. This strategic plan outlines the Partnership’s primary and overarching purpose in four visions, with two overarching and mutually supportive categories — business development and public policy — that will drive and sustain economic growth. 5 Overview, continued Business Development Houston’s economic prosperity will be driven by net job creation and new capital generated. Business Development The Partnership will actively support and promote business development. We will develop and implement an aggressive marketing / business development plan to grow 600,000 net regional jobs and $60 billion in capital investment by the end of 2015, thereby establishing Houston as a global business magnet. We will achieve these goals in collaboration with regional business leaders, governmental entities and institutions. Houston’s existing economy will thrive. New businesses will come. This plan recognizes that Houston’s economy will expand based on developing unrivaled leadership in key business segments — aerospace, alternative energy, biotechnology, education, energy, entrepreneurial enterprises, health care, information technology, nanotechnology and petrochemical — that will enrich the businesses already here and attract new talent to develop the next phase of economic growth. Each segment is capable of solidifying and expanding Houston’s presence as a global business magnet. The Partnership will work closely with the business community to develop high-impact, highyield projects that will contribute to job growth and capital investment in the targeted business segments. Houston will lead as a global region. Houston’s diversity will be embraced. As the world becomes an increasingly global marketplace, Houston will capitalize on its natural assets and the diversity of its skilled workforce to proactively expand its stature as a global business hub. The combined forces of multimodal transportation assets, the strengths of the region’s knowledge workers and the international leadership role that Houston already plays in the diplomatic and world trade arenas, will be shaped into an environment that puts Houston on the map much more visibly from a global perspective. 6 Public Policy Houston’s public policy will create an ideal environment in which to do business and it will attract the talent of the future. Public Infrastructure The Partnership will make certain that public policy enables and helps sustain a regional infrastructure that will support business development activities. It will develop, advocate, lobby and promote policies that support infrastructure development. This plan recognizes that Houston must be on the forefront of developing quality of place initiatives that attract top talent. As competition for talent becomes fiercer in the coming decade, Houston will be prepared to welcome young people, top knowledge workers, and other skilled laborers and internationally focused business leaders for whom quality of place is critically important. Overview The Greater Houston Partnership will serve as the leader and convener of ideas and initiatives that support the objectives outlined in this strategic plan. Clear, ambitious goals will define priorities. This plan addresses the need for the Partnership to align itself organizationally along the lines of business development and public policy. By organizing this way, the Partnership will make certain all activities support clear goals and strategies designed to achieve stated objectives in both areas. This alignment also enables the Partnership to prioritize activities — saying “yes” to some initiatives and “no” to others — based upon supported Partnership visions and goals. The 10-year plan will attract new sources of investment. This plan will require significant new sources of funding and investment, and a major expansion of our Membership. Achievement of this plan will allow the Partnership to lead, accelerate business development, achieve policy focus and take full advantage of the next era of opportunities. 7 Jodie L. Jiles 2005 Chairman Greater Houston Partnership The Power of the Region: Ignite Ideas. Achieve New Levels. As Greater Houston Partnership Chairman of the Board, I am confident that we will focus our efforts and make economic prosperity within the Houston region our collective objective. “What will the Houston region achieve if we focus our efforts and make economic prosperity our collective objective?” We are unique in that we, in the Houston region, have a history of “taking it to the next level,” whatever the challenge. When people in Houston see potential, we attract talent; we solve the unsolvable. Whether it’s building the Astrodome, the “Eighth Wonder of the World,” or creating innovation in the field of human heart transplants, Houston is the beacon that calls to and illuminates new possibilities. Our challenge now becomes one of asking “How will the Greater Houston Partnership build on its past and stretch toward dazzling possibilities for the future?” Our next era is around the corner. The Houston region is poised to shape it, to build on our community’s diversity, the resources of the Partnership’s Members and those of the larger business community. We are positioned to consolidate efforts and become the region of choice for global business, global talent and college graduates — the new generation of Houstonians, the best in the world. Houston’s core strength is its ability to embrace diversity, welcome people to contribute, think truly big thoughts and rise to challenges. Through this strategic plan, we will achieve dramatic results for the region. We will ignite the imagination of the talent to get us there. We will collaborate. We will convene, lead and galvanize the region’s strengths toward new levels of economic prosperity. This plan will inspire the region to focus, to invest and to participate in the next level. By the end of 2015, we will have brought new prosperity to the Houston region. 8 Bruce LaBoon Chairman Strategic Planning Task Force Jeff Moseley President and CEO Greater Houston Partnership A New Process for Achieving Consensus A New Vision for Collaboration in the Future A Common Direction for the Coming Decade This document started with the question, “What is the best path for building economic prosperity in the Houston region over coming decades?” The process began with a blank slate, nothing set in stone. The Greater Houston Partnership Board of Directors formed a Strategic Planning Task Force that synthesized visions from the community, ideas from other communities and information about the Houston region from a global perspective. I want to thank the committee members whose work is reflected in this plan. I also acknowledge the stakeholders and Partnership staff who gave shape to our thoughts and challenged the committee to raise the bar on what we might achieve. The process was open and dynamic. Members of the Partnership and stakeholders representing virtually every aspect of the Houston region were asked to provide input, including organizations such as the Port of Houston, METRO, Texas Medical Center and chambers of commerce — just to name a few. Our team interviewed representatives of leading industries, government entities and educational institutions. We also looked outward, to other cities and regions within the United States, whose energy and drive distinguish them and position them for the future. The Greater Houston Partnership’s strategic plan isn’t about the Partnership; it’s about a greater Houston today and an even greater Houston tomorrow. This document invites everyone who reads it to become part of the team to achieve our visions. I would be remiss if I did not express two more things. First, I have been honored and privileged to participate in this process as committee chairman. Second, this planning process would not have succeeded without the outstanding advice, support and guidance of Andrea Kates and Steven Walker of SUMA Partners. It has been 14 years since the Greater Houston Partnership crafted a formal strategic vision. During these same 14 years, some fields such as traditional manufacturing have been totally redefined. Some business forces such as global commerce have shifted significantly. Many opportunities such as nanotechnology have emerged as new possibilities for exploration. We have attracted a diverse community of talent, and that is one of our core strengths. And, we have created an environment that is fertile for entrepreneurs. This strategic plan is predicated on a new definition of Houston’s place in the sun. Namely, that what is good for Houston as a region is closely linked to new competitive realities on the global playing field. The plan will help drive the region toward some common directions that will lead the charge for vitality in the business community. The visions in this strategic plan reflect a spirit of building on current strengths, but reach with a clear sense of purpose toward priorities that will seize the opportunities that lie in the future. This plan demands that we use new tools — tools that give Houston the inside track in a global race for excellence, tools that cost money. This plan lays the framework for using those tools and challenges us to raise the necessary funds. At the end of the coming decade, we will all be able to look back to the ideas reflected in this strategic plan that captured our imaginations and see a new face of Houston — young people and new industries eager to move here, renewed vitality in our core industries, a leading position in the global arena. Let us embrace a common direction together. 9 “The timing is perfect for a call to action. The Houston region knows that when we marshal our resources and focus our assets, we have incredible collective power. The diversity of our community, the talent we bring to the table now and the new people that we attract will drive our success over the next 10 years and beyond.” Mission — The Greater Houston Partnership is the primary advocate of Houston’s business community and is dedicated to building regional economic prosperity. Economic Prosperity Business Development Via Marketing (Role: Economic Development, World Trade) Public Policy Via Advocacy (Role: Community and Workforce Development) 12 Build Economic Prosperity in the Houston Region Mission Focus — Economic Prosperity in the Houston Region 2005 – 2015 1 2 3 4 Vision 1 — Business Magnet The Greater Houston Partnership will lead and facilitate initiatives that establish the Houston region as a business magnet. The Partnership will support and promote visible initiatives that differentiate Houston and capitalize on core strengths and resources. Vision 2 — Gateway to Global Markets The Greater Houston Partnership will lead and facilitate initiatives that establish the Houston region as the leading gateway to global markets. Vision 3 — Infrastructure that Sets Houston Apart The Greater Houston Partnership will be the proactive visionary to build and maintain an infrastructure and business environment that set Houston apart, nationally and globally, as the most attractive place for business. Vision 4 — Public Policy that Places Houston in the Top Four U.S. Regions for Business The Greater Houston Partnership will be the aggressive driver of local, regional, state and federal public policy that makes Houston one of the top four regions in the United States for business. 13 “Houston needs local leadership to set vision and future direction. Strategic planning must focus on a series of goals that lead to the accomplishment of this vision. Before starting a journey we have to know where we are going.” Mission — The Greater Houston Partnership is the primary advocate of Houston’s business community and is dedicated to building regional economic prosperity. Economic Prosperity Business Development Via Marketing (Role: Economic Development, World Trade) Public Policy Via Advocacy (Role: Community and Workforce Development) 16 Mission Directive 1 Create new jobs, attract new businesses and build increased revenues for Member companies and future business interests 1 Vision 1 —Business Magnet The Greater Houston Partnership will lead and facilitate initiatives that establish the Houston region as a business magnet. The Partnership will support and promote visible initiatives that differentiate Houston and capitalize on core strengths and resources. Goals 1Establish the Greater Houston Partnership as the regional leader and facilitator of business interests 3 Develop and implement an aggressive marketing and business development plan to grow 600,000 net regional jobs and $60 billion in capital investment by the end of 2015 2 Create nationally recognized centers of excellence, innovative projects and targeting initiatives in aerospace, alternative energy, biotechnology, education, energy, entrepreneurial enterprises, health care, information technology, nanotechnology and petrochemical 2 Vision 2 —Gateway to Global Markets The Greater Houston Partnership will lead and faciliate initiatives that establish the Houston region as the leading gateway to global markets. Goals 1Establish Houston as one of the top four international trade regions in the United States 3 Develop and implement a plan to substantially increase direct foreign investment in the region by the end of 2015 2 Increase foreign trade in the region to $225 billion over the next 10 years 17 Mission — The Greater Houston Partnership is the primary advocate of Houston’s business community and is dedicated to building regional economic prosperity. Economic Prosperity Business Development Via Marketing (Role: Economic Development, World Trade) Public Policy Via Advocacy (Role: Community and Workforce Development) 18 Mission Directive 2 Advocacy on behalf of membership and future business interests 3 4 Vision 3 — Infrastructure that Sets Houston Apart The Greater Houston Partnership will be the proactive visionary to build and maintain an infrastructure and business environment that set Houston apart, nationally and globally, as the most attractive place for business. Goals 1Aggressively engage Houston’s business and education leaders in local, regional and federal initiatives related to infrastructure 2 Develop and facilitate the implementation of an infrastructure plan that: a.promotes and funds special projects that build quality of place b.fosters Houston as a region of choice for employers and employees Vision 4 —Public Policy that Places Houston in the Top Four U.S. Regions for Business The Greater Houston Partnership will be the aggressive driver of local, regional, state and federal public policy that makes Houston one of the top four regions in the United States for business. Goals 1Lead the state in driving business-focused public policy that fosters economic development 2 Establish the Greater Houston Partnership as the regional facilitator to address issues, and the driver and supporter of policies that grow business and increase foreign trade 3 Aggressively advocate, lobby and promote policies and legislation that position the region’s business community as a national and global leader 4 Initiate and enhance collaboration with other organizations and key stakeholders to promote and develop public policy 19 Vision 1 — Business Magnet The Greater Houston Partnership will lead and facilitate initiatives that establish the Houston region as a business magnet. The Partnership will support and promote visible initiatives that differentiate Houston and capitalize on core strengths and resources. Vision 1 The Greater Houston Partnership will lead and facilitate initiatives that establish the Houston region as a business magnet. The Partnership will support and promote visible initiatives that differentiate Houston and capitalize on core strengths and resources. Vision 1 — Houston as a Business Magnet Goals 1 Establish the Greater Houston Partnership as the regional leader and facilitator of business interests 2 Create nationally recognized centers of excellence, innovative projects and targeted initiatives in aerospace, alternative energy, biotechnology, education, energy, entrepreneurial enterprises, health care, information technology, nanotechnology and petrochemical 3Develop and implement an aggressive marketing and business development plan to produce 600,000 net regional jobs and $60 billion in capital investment by the end of 2015 Objectives The Strategic Planning Task Force achieved consensus on the following objectives: • Evaluate trends Examine the region’s current leading industries and create specific strategies to achieve our goal for net job growth. Create a formal system for incorporating new industries into the strategy • Build on core competencies that attract new businesses to the region Identify and support specific initiatives in industries that are primed for growth as determined by market demand, economic opportunities, breakthrough research and critical mass of talent • Create programs that demonstrate the value of the Greater Houston Partnership to Members and prospects Increase revenues and opportunities for companies (Members and prospects) in the region • Develop consistent messaging and proactive communications initiatives Promote specific initiatives by highlighting opportunities and advancements within each industry segment to companies and organizations, nationally and globally 23 Vision 1 The Greater Houston Partnership will lead and facilitate initiatives that establish the Houston region as a business magnet. The Partnership will support and promote visible initiatives that differentiate Houston and capitalize on core strengths and resources. The Five Key Elements to Becoming a Business Magnet (SFBUFS)PVTUPO1BSUOFSTIJQ(PBM $PNQPTJUF&NQMPZNFOU 'PSFDBTU6)$FOUFSGPS 3FHJPOBM'PSFDBTUJOH 1FSSZNBO(SPVQBOE8PPET 1PPMF&DPOPNJDT Centers of excellence, innovative projects and targeted initiatives: The Partnership will lead and facilitate projects in core industries that will attract new jobs and capital investment to the region. Research of national, state and regional industry clusters will drive selection criteria. Houston Regional Employment Build on core industry concentrations Attract and retain a strong talent pool Stay ahead of growth trends Proactively seek out business development opportunities Element 5 Communicate Houston’s unique positioning 1BZSPMM+PCTJO5IPVTBOET Element 1 Element 2 Element 3 Element 4 “We should establish our reputation as the best place in America to grow business, including small and minority enterprises. We need a strategic plan that will direct us forward then enlist the support of those willing and capable of doing their part to turn the plan into reality.” 25 Vision 1 The Greater Houston Partnership will lead and facilitate initiatives that establish the Houston region as a business magnet. The Partnership will support and promote visible initiatives that differentiate Houston and capitalize on core strengths and resources. Element 1 — Build on Core Industry Concentrations Houston is home to a diverse and dynamic industrial base that will propel the region to the forefront in the 21st century. We will identify key industries where Houston may lay claim to a unique set of business assets that drive focused efforts to build centers of excellence, create innovative projects and develop targeted initiatives that will build revenues and attract talent. The industry sectors identified by the Strategic Planning Task Force and community stakeholders include aerospace, alternative energy, biotechnology, education, energy, entrepreneurial enterprises, health care, information technology, nanotechnology and petrochemical. The following is a summary of strengths that Houston brings to each of these 10 sectors: A Aerospace — Since Johnson Space Center (JSC) opened more than 40 years ago, the aerospace industry has maintained a commanding presence in the Houston region. One of NASA’s largest R&D facilities, JSC manages the design, development and assembly of the International Space Station. It also is home to the space shuttle program operations and management; it serves as NASA’s lead center for life sciences research and applications; it controls human spaceflights; and it is integral to implementing the “Vision for Space Exploration.” Key enabling technologies in areas such as materials, life sciences, propulsion, electronics and energy storage are developed at JSC through industry collaboration and are readily transferred to a host of industries throughout the region and around the world. � B Alternative Energy — �������������������������������������������������� Within the Houston region, extensive research and development is under way on developing energy sources that are not based on the burning of fossil fuels or the splitting of atoms (e.g., solar, geothermal, wind, tides, hydroelectric and hydrogen fuel cells). Renewed interest in this field comes from the long-range effects of greenhouse gas emissions, produced through the burning of fossil fuels and from energy waste byproducts. The Partnership is working with area organizations to develop and demonstrate advanced hydrogen and fuel cell technologies to reduce our nation’s dependence on oil, improve our air quality and maintain our economic competitiveness. 26 C Biotechnology — �������������������������������������������������� The Houston region is a research powerhouse, with leadership in five life science areas: bio-defense and infectious disease, cardiovascular medicine, genetics/genomics, nanotechnology and oncology. BioHouston, an offspring of the Greater Houston Partnership, serves as a catalyst, bringing together people in the commercial, service, governmental, academic and entrepreneurial/venture capital sectors to promote collaboration and creation of new companies. The region’s goal is to create an environment that will stimulate technology transfer and research commercialization, thereby generating economic wealth and making Houston a global competitor in life science commercialization. DEducation —���������������������������������������������������� The Census Bureau’s 2004 American Community Survey showed that 29.0 percent of adults in our region have a bachelor’s degree or higher, versus 27.0 percent nationwide. Houston’s ability to retain and attract a well-educated and skilled workforce is directly linked to the intellectual and innovative talent working in the region. From Nobel laureate instructors at Rice University to cutting-edge researchers at elite institutions such as NASA’s Johnson Space Center, Texas Medical Center, The James A. Baker III Institute for Public Policy, etc. Houston has a competitive edge for the coming decade. Vision 1 The Greater Houston Partnership will lead and facilitate initiatives that establish the Houston region as a business magnet. The Partnership will support and promote visible initiatives that differentiate Houston and capitalize on core strengths and resources. E Energy — ������������������������������������������������������������ The Houston region is the U.S. energy headquarters and work center for virtually every segment of the petroleum industry. Forty-seven percent of Houston’s economic base employment is energy related. The more than 3,600 energy-related establishments located within the region include nearly 600 exploration and production firms, more than 170 pipeline transportation establishments and hundreds of manufacturers and wholesalers of energy-sector products. The region’s strengths range from the capability to build and manufacture structures and equipment needed to develop and produce energy to the knowledge management and intellectual capital required to support and supply the world’s future energy needs. Houston has the largest concentration of human capital and infrastructure for energy research, development and production in the nation. HInformation Technology — ��������������������������������������� The Houston metropolitan area’s strong information technology industry supports innovation, business development and an entrepreneurial culture, and it is sustained by numerous communications, data processing and software publishing services, and computer and electronics manufacturing firms. The region is home to more than 300 software development companies, more than 350 establishments providing telecommunications services and more than 100 providing on-line data services. Additionally, Houston’s ability to keep pace with the technical breakthroughs in the information technology sector makes it one of the prime hubs for advancement and development. F Entrepreneurial Enterprises — ����������������������� Evidenced by more than 85,000 ������������� small businesses and fueled by a “can do” attitude of its business owners and inhabitants, entrepreneurs thrive in the region. A dynamic economy, well-developed information technology sector, talented workforce, businessfriendly environment, low costs of living, ease of doing business and an outstanding quality of life create an environment supportive of new start-ups. Entrepreneurs will help to build the regional economy. I Nanotechnology — ���������������������������������������������������������� Houston is the birthplace of nanotechnology, the world’s leading center for the study of Buckyballs and Buckytubes, and the destination of two of the three Nobel prizes awarded thus far in this rapidly emerging field. Houston’s prestigious Rice University houses The Center for Nanoscale Science and Technology as well as The Center for Biological and Environmental Nanotechnology. And, five major research institutions of the Texas Medical Center have formed the Alliance for NanoHealth, the first collaborative research endeavor bridging the gaps between medicine, biology, materials sciences, public policy and nanotechnology. G Health Care — ���������������������������������������������������������������� There are a wealth of medical facilities in the Houston region, and many are located in the Texas Medical Center — the largest collection of health care facilities and academic medical institutions in the world. The medical center serves more than 5 million patients each year. Its three universities have research budgets totaling more than $600 million per year, including nationally recognized clinical research programs. And, there has been a recent expansion of high-technology research in areas such as the human genome project, biomedical imaging, nanotechnology, proton therapy, adult stem cell transplantation and transgenic murine models of human disease. J Petrochemical — ������������������������������������������������������������ The Texas Gulf Coast has a crude operable capacity of 3.853 million barrels of refined petroleum products per calendar day. This is 86.2 percent of the Texas total and 22.8 percent of the U.S. total. The Houston MSA has more than 380 chemical manufacturing establishments, with aggregate employment exceeding 34,200. The Houston-Gulf Coast region has nearly 40 percent of the nation’s base petrochemicals manufacturing capacity and dominates U.S. production of three major resins — polyethylene (38.7 percent U.S. capacity); polypropylene (48.4 percent U.S. capacity); and polyvinyl chloride (35.9 percent U.S. capacity). “We see Houston as a vibrant, visionary, community, technologically advanced, with the infrastructure to design, create and develop integrated products and services that build life-enhancing experiences for citizens across the region and around the world.” — Greater Houston Partnership Technology Infrastructure Task Force 27 Vision 1 The Greater Houston Partnership will lead and facilitate initiatives that establish the Houston region as a business magnet. The Partnership will support and promote visible initiatives that differentiate Houston and capitalize on core strengths and resources. Element 2 — Attract and Retain a Strong Talent Pool It takes people to make industry work. Talented people are at the root of economic success and resulting competitive advantages that the Houston region enjoys. Knowledge workers are our future. The Texas Workforce Commission forecasts that employment (including selfemployed) in the Gulf Coast Workforce Development Area will grow by 481,900, or 18.7 percent, between 2002 and 2012. Of this growth, 37.7 percent will be in management, business, finance, professional and scientific occupations — occupations for which a bachelor’s degree or more advanced education is prerequisite. In 2004, only 29.0 percent of the region’s adult population held at least a bachelor’s degree, according to the Census Bureau. The need to increase the number of people with college degrees — through migration, increased access to higher education or both — is manifest. Employment Growth by Occupation 2002-2012 Gulf Coast Workforce Development Area* 2002 Change 2002 – 2012 Management/Business/ Finance 258,000 — 10.0% Professional/Scientific 489,050 — 19.0% Business & Personal Services 468,400 — 18.2% Sales 274,450 — 10.7% Management/Business/ Finance 50,850 — 19.7% Professional/Scientific 130,650 — 26.7% Business & Personal Services 136,350 — 29.1% 2012 Management/Business/ Finance 308,850 — 10.6% Professional/Scientific 619,700 — 27.1% Business & Personal Services 604,750 — 28.3% Sales 41,950 — 15.3% Office/Administrative Support 11,650 — 16.2% Office/Administrative Support 39,800 — 9.6% Sales 316,400 — 8.7% Office/Administrative Support 456,250 — 8.3% Farming/Fishing/Forestry 11,650 — 0.5% Farming/Fishing/Forestry 850 — 7.3% Farming/Fishing/Forestry 12,500 — 0.2% Construction/Installation 302,600 — 11.7% Construction/Installation 50,750 — 16.8% Construction/Installation 353,350 — 10.5% Production/Transportation/Materials Production/Transportation/Materials Moving Production/Transportation/Materials Moving Moving 355,150 — 13.8% 30,700 — 8.6% 385,850 — 6.4% 2,575,750 — 100.0% 28 TOTAL 481,900 — 18.7% *Defined as Austin, Brazoria, Chambers, Colorado, Fort Bend, Galveston, Harris, Liberty, Matagorda, Montgomery, Walker, Waller and Wharton counties. Source: Texas Workforce Commission, 2004 3,057,650 — 100.0% Vision 1 The Greater Houston Partnership will lead and facilitate initiatives that establish the Houston region as a business magnet. The Partnership will support and promote visible initiatives that differentiate Houston and capitalize on core strengths and resources. Element 3 — Stay Ahead of Growth Trends Future industry trends are not the same as the current snapshot. Houston’s future depends upon capitalizing on growing markets and transforming our current resources into high-yield initiatives by 2015. The Texas Industry Cluster Initiative This project was launched by the State of Texas to identify its economic development opportunities. The report outlined specific strategies for maximizing growth in a variety of industry clusters, by region. The following findings are directly relevant to Houston’s future. Houston’s unique strengths, as outlined in the State’s report, include the following: • Advanced technologies across multiple markets — aerospace, energy, information technology, medical and nanotechnology • Logistics hub — airports, broadband, highways, information technology and ports • Center for distribution and supply chain fulfillment Source: Engines of the Texas Economy, 2005 The following emergning business industries represent potential applications that track with projected growth trends: Cybersecurity Homeland security Logistics / supply chain solutions Nanotechnology New processes in refining and chemicals Source: Engines of the Texas Economy, 2005 Personalized health information RFID smart cards Supercomputing Wireless applications The key to becoming a business magnet is to ensure the Houston region’s current strong economic capabilities are closely linked to future trends. The Partnership must implement a process for monitoring changes in economic, regulatory and competitive drivers based on independent, objective metrics. Economic and industry trends will drive the direction taken by Houston’s centers of excellence, innovative initiatives and exceptional enterprises. 29 Vision 1 The Greater Houston Partnership will lead and facilitate initiatives that establish the Houston region as a business magnet. The Partnership will support and promote visible initiatives that differentiate Houston and capitalize on core strengths and resources. Element 4 — Proactively Seek Out Business Development Opportunities The Greater Houston Partnership will initiate an aggressive business development effort to ensure that the Houston region develops a powerful global presence. A comprehensive marketing campaign will be developed and implemented to communicate the virtues of doing business in the Houston region. This effort will focus on communicating the business advantages emanating from the growth opportunities envisioned within the centers of excellence. Element 5 — Communicate Houston’s Unique Positioning The Greater Houston Partnership will create and implement a focused communications and marketing campaign, directed to business decision-makers, both nationally and globally. A Create awareness and encourage relevant organizations and companies to begin using Houston as a focal point for their activities in those segments D Position Houston (as compared with other regions) as the market leader in our targeted industries E Strongly communicate the quality of place issues that support the workforce of the future to business decision-makers and potential employees B Encourage commitment of financial and human resources by key business decision-makers to the Houston region Real Per Capita Personal Income The goal is to grow real per capita income by 2.7 percent per year, exceeding the compound annual growth rate of 1.94 percent recorded from 1969 to 2003. 30 Constant 2004 Dollars per Year C Enable Members and prospects to build economic prosperity (jobs and revenues) via strong, focused messaging 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 1969 1974 1979 — BEA Estimate 1984 1989 1994 1999 — Projected +2.7% CAGR 2004 2009 2014 Vision 2 — Gateway to Global Markets The Greater Houston Partnership will lead and facilitate initiatives that establish the Houston region as the leading gateway to global markets. Vision 2 The Greater Houston Partnership will lead and facilitate initiatives that establish the Houston region as the leading gateway to global markets. Vision 2 — Gateway to Global Markets Goals 1Establish Houston as one of the top four international trade regions in the United States 2Increase regional foreign trade to $225 billion over the next 10 years 3Develop and implement a plan to substantially increase direct foreign investment in the region by the end of 2015 Objectives The Strategic Planning Task Force achieved consensus on the following objectives: • Measure Houston against global competitors Incorporate attributes that define a “global region” into our benchmarking • Galvanize strengths through collaboration – Facilitate coordination of assets to portray Houston as an international hub for commerce (regional ports and airports, I-69 Corridor, infrastructure, talent, international residents, industry leadership, etc.) – Collaborate with the Houston Airport System to become one of the top 10 largest international passenger gateways in the United States – Increase the Port of Houston’s containerized shipping ranking to one of the top four in the United States – Increase Houston’s Consular Corps ranking to number one in the country – Pursue highly visible international commerce initiatives • Implement a business development and marketing campaign – Develop and implement an aggressive international business development and marketing campaign targeted at specific international points of origin that are identified as significant international trade and investment sources aligned with our centers of excellence – Create awareness about the capabilities of the regional ports and airports, the I-69 Corridor, the regional railroad infrastructure and other regional entry points – Inform global decision-makers about the region’s advantages as a destination area capable of global distribution “We will establish ourselves as the international trade portal, with strong links to Central and South America, India, China and Mexico. We will capitalize on our strengths and continue to diversify our business base.” 33 Vision 2 The Greater Houston Partnership will lead and facilitate initiatives that establish the Houston region as the leading gateway to global markets. Globalization is an economic phenomenon, and its impact has revolutionized businesses in the Houston region. Houston’s role as a business magnet offers tremendous opportunities to strengthen and expand regional commerce in the global marketplace. The recommendation is to select key industries where Houston may lay claim to a unique set of business assets and competitive advantages. Then we will drive focused efforts to centers of excellence, create innovative projects and develop targeted initiatives that will fuel international commerce and revenues and attract talent. One look at the statistics on foreign trade leads to the conclusion that this is one of the chief drivers of the region’s economy. A 2001 Partnership study estimated that 38 percent of the jobs in the metropolitan area are supported directly or indirectly by international business. Houston’s existing international infrastructure, including the Port, the potential of a freight/rail district, the I-69 Corridor, the Houston Airport System and the Internet, is the foundation for future prosperity. This foundation enables the Houston region to develop into one of the world’s pre-eminent international commerce centers. The Partnership will collaborate with business leaders, government entities and organizations to increase global commerce. Value of Foreign Trade Port of Houston Foreign Tonnage Increase foreign trade passing through Houston over the next 10 years Increase foreign tonnage by 20 percent by the end of 2015 250 250 2015 $225 billion 200 Tons (000.000) $ Billions 200 2004 $104.6 billion 150 100 1992 $39.2 billion 100 50 — Goal ‘93 ‘95 ‘97 ‘99 ‘01 ‘03 ‘05 ‘07 Source: World Institute of Strategic Economic Research 34 — Actual — Trend 50 0 150 ‘09 ‘11 ‘13 ‘15 0 1990 1994 1998 2002 2006 2010 2014 Vision 2 The Greater Houston Partnership will lead and facilitate initiatives that establish the Houston region as the leading gateway to global markets. The following is a summary of strengths that Houston brings to international commerce: 1 Overview — In 2004, Texas ranked first among the states in value of merchandise exports. Houston exports to the Americas represented 38 percent of its total exports. Between 1991 and 2004, the total dollar value of Houston-Galveston customs exports and imports almost tripled. In 2004, the Houston-Galveston customs district ranked as the sixth-largest exporter by dollar value in the nation, with nearly $40 billion in exports. There are more than 3,000 Houston area firms, foreign government offices and nonprofit organizations involved in international business. Nearly 470 Houston firms with subsidiaries in 129 countries, and more than 600 firms in Houston report having foreign ownership. Of the world’s 100 largest non-U.S.-based corporations, at least 51 have operations in Houston. 2 International governmental representation — More than 80 nations have consular offices in the region, ranking the Houston Consular Corps among the nations largest. At least 42 foreign governments maintain trade and commercial offices here. Between 1992 and 2004, the number of consulates in Houston increased by almost 50 percent. Houston represents the third-largest consular corps in the United States, behind New York and Los Angeles. 3 International population — More than 1 million Houstonians (more than one in five) are foreign-born. The steady rise in immigration supports Houston’s position as an international center. The region’s number of foreign-born almost doubled between 1990 and 2003. Major employers of the Houston area are international in scope. Employees of these companies are transferred internationally, bringing back with them knowledge and experience of competing abroad. 4 Support for Internationalism — The World Energy Cities Partnership (WECP), an organization comprised of 14 international member-cities, has named the Partnership as its Permanent Secretariat. WECP’s forum encourages city administrations to exchange expertise and experience in the petroleum industry and in economic and infrastructure development strategies, with the emphasis on economic and business development. Greater Houston Partnership affiliate The World Energy Cities Partnership (WECP) Globalization and World Cities Ranking 1. 2. 3. 4. 5. London Paris New York Tokyo Chicago 6. Frankfurt 7. Hong Kong 8. Los Angeles 9. Milan 10.Singapore Houston must be on this list by 2015. Source: Globalization and World Cities Roster, 1999 • • • • encourages cities with energy-based economies to: provide a worldwide network of industry support services and resources; facilitate trade missions for local businesses to travel to member cities and capitalize on business development opportunities provide information, liaisons and support to prospective firms interested in investment and business opportunities, in order to facilitate access to each other’s markets; and share experiences and contacts and provide support for each other in tackling common industry issues. 35 Vision 2 The Greater Houston Partnership will lead and facilitate initiatives that establish the Houston region as the leading gateway to global markets. International Multimodal Transportation Hub From its founding, Houston has been known as “the place where the railroads meet the sea.” From these beginnings, Houston has grown and developed a world-class, multimodal transportation system serving inter-regional and international traffic. As the economic engine of the state, Houston has developed into a major international transportation hub. Surface Transportation The Greater Houston region has one of the most extensive and dynamic roadway and transit networks in the country. The region continues to plan for significant system growth to meet the demands of a growing population and business community. Roadway traffic is projected to grow from 125 million vehicle miles traveled per day in 2002 to 218 million vehicle miles traveled per day by 2025. To meet this challenge, $65 billion in roadway and transit improvements are planned. This investment is forecasted to result in a 60 percent reduction in future congestion, even though the region will be adding approximately 3 million additional residents. The region also is investing in maximizing the efficiency of the surface transportation system by improving traveler safety, moving vehicles that block travel lanes and synchronizing traffic signals for more efficient traffic progression. Sea Ports The Port of Houston is the sixth-largest port in the world and the second largest in the United States. It ranks first nationally in foreign tonnage. Exponential growth is forecast. The Port’s Barbours Cut terminal handles more than 90 percent of Texas’ waterborne container shipping market, with 80 percent of those containers accessing the Port via the region’s roadways. Significant investment in the Port’s new Bayport Container Terminal will triple the Port’s container capacity. The Port of Galveston is home to a growing cruise line business. It owns and operates for-hire public wharves, transit sheds, open and covered storage facilities, warehouses and freight-handling facilities. The Port of Texas City is the largest private petrochemical port in the United States and ranks as the eighth-largest port in the country. Both ports are located in Galveston County. 36 Port Freeport, located in Brazoria County, is the 12th-largest port in the United States in terms of tonnage. It has a 400-foot-wide, 45-foot-deep channel and more than 7,500 acres available for development, including 1,400 environmentally mitigated acres. Regional Airports There are 12 Texas Airport System Plan (TASP) airports located within the region. This includes three airports that serve commercial traffic and nine general and private aviation facilities. Additionally, there are many other private airfields or airparks located throughout the region that serve private companies and individuals. The Houston Airport System, comprising George Bush Intercontinental Airport (IAH), William P. Hobby Airport and Ellington Field, is a major factor in the regional and state economies. The System is responsible for more than $8 billion in economic activity annually, and it generates more than 90,000 jobs for the region. IAH, the System’s primary air cargo facility, can handle 30 million tons of cargo a month, and recently opened a new $125 million air cargo facility containing 550,000 square feet of storage space for processing and distribution. Freight Rail Houston is a critical link for freight movement due to the rapid growth of the Port of Houston and increased trade resulting from NAFTA. Regional stakeholders are working together to develop a comprehensive plan of short- and long-range improvements, including the ultimate development of a high-speed, high-capacity loop that could bypass congested areas. Vision 2 The Greater Houston Partnership will lead and facilitate initiatives that establish the Houston region as the leading gateway to global markets. The Woodlands Tomball Prairie View Spring Dayton Hooks Airport Bush Intercontinental Airport Humble Lake Houston Multiple Rail Yards Katy Natural Gas Pipeline Hub Mont Belvieu Pipeline Hub Port of Houston West Houston Lakeside Airport Katy Liberty Baytown Airport HOUSTON Baytown Trinity Bay Pasadena Rosenberg Sugar Land La Porte Municipal Airport Barbours Cut Container Terminal Hobby Airport Houston Hull Airport Richmond Anahuac Ellington Airport Controlled Access Highway System Houston Ship Channel Bayport Container Terminal Pearland Airport Missouri City Houston Southwest Airport Galveston Bay Friendswood League City Houston Gulf Airport Intracoastal Waterway Alvin Texas City Port of Texas City NORTH Port Bolivar Port of Galveston Wharton To Port of Freeport Scholes Airport Galveston Gulf of Mexico Vision 2 The Greater Houston Partnership will lead and facilitate initiatives that establish the Houston region as the leading gateway to global markets. Interstate 69 (I-69) Currently undergoing environmental review, I-69 is the combination of two federally designated high-priority corridors that traverse the region. When completed, I-69 will serve as the most direct trade route linking the industrial centers of Mexico, the United States and Canada. It is a key component to the continued growth and development of all Texas ports. The Texas Department of Transportation’s Trans-Texas Corridor project is leveraging off current studies for its TTC-69 plan that will incorporate existing and new highways, railways and utility rights-of-way in a network across Texas. Pipelines Pipelines are instrumental in transporting product into, out of and within the region. Fifteen of the nation’s 20 largest petroleum products and crude oil pipeline operators have corporate or divisional headquarters or ownership interests in Houston. These 15 control more than 64,000 miles, or 45.8 percent, of the nation’s 139,901 miles of liquid pipelines. Fourteen of the nation’s 20 largest natural gas transmission companies have corporate or divisional headquarters in the region, accounting for 57.5 percent of the nation’s 195,038 miles of gas pipelines. [Regarding regional / statewide transportation projects] “We have put together a string of amazing systems that are vitally important and that generate better business for all of us.” — County Judge Robert Eckels, Harris County 38 Greater Houston Partnership affiliate The Alliance for I-69 Texas was created in 1994 by the Greater Houston Partnership to promote the development of I-69 in Texas. Membership includes government and business interests in 34 counties from east to southeast Texas. Designated by Congress as a high-priority corridor, I-69, when completed, will be the most direct interstate linking the industrial centers of Mexico, the United States and Canada. • Federal statute identifies the general location of I-69 in Texas as U.S. 59 from Texarkana to Laredo and two legs into the lower Rio Grande Valley along U.S. 77 from Victoria to Brownsville and U.S. 281 from George West to Progreso. • I-69 Texas has been selected as one of only seven transportation construction projects in the United States that will receive accelerated environmental review under an Environmental Streamlining Executive Order announced in 2002. • Environment and location studies are under way along the approximately 950 miles of I-69 in Texas. These studies are projected to be complete by 2010, with construction targeted to begin on some segments as early as 2006. • The Texas Department of Transportation’s Trans-Texas Corridor project is leveraging off the Corridor 18 and 20 studies for its TTC-69 plan that will incorporate existing and new highways, railways and utility rights-of-way in a network across Texas. Vision 2 The Greater Houston Partnership will lead and facilitate initiatives that establish the Houston region as the leading gateway to global markets. Port of Seattle Winnipeg Quebec 40 Montreal 5 84 15 94 Minneapolis Port Huron 90 Pipeline Corridors Windsor Port of Cleveland 35 80 Houston Detroit 80 Ports of Los Angeles/ Long Beach 70 25 10 30 Dallas 69 45 49 20 Juarez Port of Charleston Memphis 40 35 El Paso 64 40 Oklahoma City 40 8 Atlanta 55 10 35 37 Houston Laredo Monterrey 75 Port of Houston Port of Texas City Port of Galveston Port of Freeport Reynosa Port of Altamira Cancun Cozumel Port of Lazaro Cardenas Port of Jacksonville Port of Miami Port of Havana Mexico City 95 Port of New Orleans 10 San Antonio 20 16 Austin Port of Manzanillo Port of New York -New Jersey 70 Kansas City Phoenix 80 Indianapolis 15 5 Pittsburg Chicago Denver Port of Oakland Toronto Port of Veracruz Vision 3 — Infrastructure The Greater Houston Partnership will be the proactive visionary to build and maintain an infrastructure and business environment that set Houston apart, nationally and globally, as the most attractive place for business. Vision 3 The Greater Houston Partnership must be the proactive visionary to build and maintain an infrastructure and business environment that set Houston apart, nationally and globally, as the most attractive place to do business . Vision 3 — Houston’s Infrastructure Supports Business Goals 1Aggressively engage Houston’s business and education leaders in local, regional and federal initiatives related to infrastructure 2Develop and facilitate the implementation of an infrastructure plan that: a.promotes and funds special projects that build quality of place b.fosters Houston as a region of choice for employers Objectives The Strategic Planning Task Force achieved consensus on the following objectives: • Identify critical components that drive success with regard to quality of place Serve as a leader or steward to ensure that Houston offers basic building blocks that are conducive to business — affordable housing, air quality, education, green space, health care, transportation and regional mobility • Set priorities based on research – Benchmark against other regions and cities to prioritize infrastructurerelated topics that contribute to economic prosperity (jobs, revenues, talent, etc.) – Pinpoint initiatives that have the potential to create new jobs, draw new industries and increase revenues for companies in the region – Align infrastructure initiatives with growth prospects for Houston’s centers of excellence 42 • Lead initiatives that keep policy aligned with regional economic prosperity – Leaders must exemplify a visionary spirit in addressing quality of place – Develop excellence initiatives that differentiate overall quality of life Vision 3 The Greater Houston Partnership must be the proactive visionary to build and maintain an infrastructure and business environment that set Houston apart, nationally and globally, as the most attractive place to do business . Quality of Place — The key to supporting a region identified as a business magnet is an infrastructure agenda designed to make certain it compares favorably with competitor cities. Infrastructure initiatives must address issues, including aesthetics, affordable housing, air quality, cost of living, education, entertainment and recreation, health care, information technology infrastructure, mobility, power, transportation and water quality. Regional prosperity will require a concerted effort from every sector to attract and retain knowledge workers and create a true quality of life for Houstonians. Greater Houston Partnership affiliate The Quality of Life Coalition, a group of representatives led by the Greater Houston Partnership from Houston’s civic, business and environmental communities, mobilizes public and private sectors to fund and improve Houston’s aesthetics, flood control and recreational amenities. This focus on quality-of-life factors is essential to Houston’s ability to attract businesses and skilled workers. Recommendations include planting trees, landscaping freeways, adding parks, improving waterway water quality and establishing a canoe trail system, among others. 43 Vision 3 The Greater Houston Partnership must be the proactive visionary to build and maintain an infrastructure and business environment that set Houston apart, nationally and globally, as the most attractive place to do business . Air Quality — The Partnership has led the effort to improve the region’s air quality through formation of organizations such as the Business Coalition for Clean Air, the Texas Environmental Research Consortium and the Texas Clean Air Working Group. These organizations work to develop a consensus on air quality goals and strategies, improve air quality science and implement effective reduction programs without jeopardizing jobs or economic progress. Business sectors and individual companies pursue new technologies and programs that make them, and the region, leaders in innovative approaches to cleaning the air. After successfully addressing the one-hour ozone standard, the Texas Commission on Environmental Quality now plans to achieve the new eighthour ozone standard set for the region. They will accomplish this by working alongside the Partnership and other stakeholders with a vested interest in public health, quality of life and economic vitality. By working together, businesses, elected officials, the public sector, trade associations, environmental groups and citizens will have tremendous impact on air quality, ensuring the region a competitive advantage to attract and retain businesses. 44 Cost of Living — From its outset nearly four decades ago, the ACCRA Cost-ofLiving Index has consistently shown that Houston enjoys living costs well below the nationwide average. This enables the region a competitive advantage over other major metropolitan areas of more than 2 million. In the 2005 survey: • Houston’s overall after-taxes living costs were 12 percent below the nationwide average for nearly 300 areas. • Of the 20 metropolitan areas with populations of more than 2 million that participated in the survey, Houston’s housing costs were 44 percent below the average for the large metro areas, and its overall costs were 23 percent below the average. • Houston’s grocery prices, 21 percent below the major-metro average, were also the lowest; its utility costs were 10 percent below the average; its transportation costs were 9 percent below; its health care costs were 7 percent below; and its costs for miscellaneous goods and services were 11 percent below the average. Vision 3 The Greater Houston Partnership must be the proactive visionary to build and maintain an infrastructure and business environment that set Houston apart, nationally and globally, as the most attractive place to do business . Education and Workforce — Maintaining a competitive edge in a knowledgebased economy means offering a wide range of opportunities for formal education and workforce training. Houston is a major center of higher learning. In fall 2004, the Houston region had 313,664 students enrolled in more than 60 degree-granting colleges, universities, institutes and technical schools. These include Rice University, one of America’s elite teaching and research universities, the University of Houston, the region’s largest public research and teaching university, and numerous other private colleges, universities and institutions. Houston has the education infrastructure to develop knowledge workers Houston Higher Education Statistics Colleges, Universities and Institutions 60+ Fall 2004 Enrollment 313,664 Degrees Awarded – 2003 Academic Year 25,000+ Vocational, Technical, Business Schools 100+ Sources: Houston Facts, 2005, Texas Higher Education Coordinating Board Greater Houston Partnership affiliate The Center for Houston’s Future has identified four areas that must be addressed in order to advance Houston’s global competitiveness. They include: • innovation support with venture capital development; • human capital and workforce development; • regional economic development strategies; and • leveraging global connections into global corporate services in the areas of finance, accounting, law and media/advertising. “The Houston region’s economic well-being increasingly depends upon its ability to nurture, attract and retain skilled and creative knowledge workers and high-tech companies.” — Houston Area Survey (2005), Stephen L. Klineberg 45 Vision 3 The Greater Houston Partnership must be the proactive visionary to build and maintain an infrastructure and business environment that set Houston apart, nationally and globally, as the most attractive place to do business . Health Care — Houston is one of the fastest growing regions of the country. More than 4 million people live here. The region boasts the world’s largest medical center. The Partnership’s Public Health Care Task Force represents public officials, public and private health service providers, medical school administrators, and business and community leaders. Recently, the task force examined the public health delivery system in Houston and Harris County. They identified the contrast between the region’s abundance of physicians and wide variety of treatment available, juxtaposed with rapidly rising health care and insurance costs, and made recommendations to alleviate the current health care conditions. Included in the recommendations was the development of additional health care centers designated with Federally Qualified Health Center (FQHC) status. This designation allows significantly expanded access to health care for underserved residents. Increased numbers of FQHCs also will help produce more jobs and economic growth. The Partnership will continue to convene leadership representing healthrelated issues that support the mission of building economic prosperity and improving overall quality of place. Texas Medical Center Overview Area 800+ acres Permanent Buildings 100+ Total Employment 65,300 Capital Investment (cumulative) $8.2 billion+ as of December 2004 Patient Visits Per Year 5.2 million Foreign Patients Per Year 10,456 in 2004 Licensed Beds 6,344 plus 373 bassinets Student Enrollment 22,000 Combined Operating Budgets (all institutions) $5.4 billion (2001) Total Research Grants (200-2004) $3.5+ billion Sources: Texas Medical Center 2005 Facts and Figures and Houston Facts 2005 Regional Health Care Assets* Physicians 10,497 Hospitals 99 Hospital beds 18,600 *Greater Houston 10-county region Source: Houston Facts 2005 46 “Health care excellence in Houston is driven by the outstanding clinical and research activities in the world’s largest medical center. The community is energized to expand technology transfer and commercialization and create new companies whose products will improve health and create economic wealth.” Vision 3 The Greater Houston Partnership must be the proactive visionary to build and maintain an infrastructure and business environment that set Houston apart, nationally and globally, as the most attractive place to do business . Information Technology Infrastructure — Information technology includes broadband, telecommunications, information systems, networks, wireless Internet and critical components essential to developing and maintaining an infrastructure that gives Houston the competitive advantage. Sustaining a strong information technology architecture allows industry, government and business organizations to create, store, exchange and utilize information in its various forms, from e-mail to multimedia presentations, and communicate with key business and community interests on a daily basis. Information technology recommendations include: • Increasing community and institution-wide access to wireless Internet portals and products; • Revising procedures to automate and streamline production activities; • Enhanced and alternative communications such as teleconferencing and electronic file exchange; • Using computer hardware and software to automate and augment clerical, administrative and management tasks in organizations; • Satellite technologies for remote business management and access to information; • Collocation and data management systems to provide security and redundancy of information. Mobility — Over the next decade, the Partnership must aggresively expand the process to improve mobility throughout the region. Houston must continue to make a concerted effort to explore all alternatives to establish a coordinated system of mass transit improvement at the lowest possible cost. The key initiatives include, but are not limited to, light rail expansion; innovative toll road strategies; a major increase in bus service, including 1,000 new bus routes; an aggressive expansion of the I-10 freeway; development of the I-69 Corridor; and implementation of a “smart streets” initiative. Houston will continue to make a concerted effort to explore all alternatives to establish a coordinated system of mass transit improvement at the lowest possible cost. Greater Houston Partnership affiliate The Gulf Coast Regional Mobility Partners (Houston-Galveston region) and The Houston-Galveston Area Council seek to increase transportation funding and promote regional issues, projects and priorities at the state and federal levels. Recommendations focus on tollways, managed and high occupancy lanes, freeway expansion, pass-through tolling, and improvement of freight movement and at-grade crossing safety in order to improve mobility and reduce congestion. “The Partnership needs to be instrumental in dealing with air quality. It is a critical component of being a region of choice.” 47 Vision 4 — Public Policy The Greater Houston Partnership will be the aggressive driver of local, regional, state and federal public policy that makes Houston one of the top four regions in the United States for business. Vision 4 The Greater Houston Partnership must be the aggressive driver of local, regional, state and federal public policy that makes Houston one of the top four regions in the United States for business. Vision 4 — Public Policy Goals 1Lead the state in driving business-focused public policy that fosters economic development 2Establish the Greater Houston Partnership as the regional facilitator to address issues, and the driver and supporter of policies that grow business and increase foreign trade 3Aggressively advocate, lobby and promote policies and legislation that position the region’s business community as a national and global leader 4Initiate and enhance collaboration with other organizations and key stakeholders to promote and develop public policy Objectives The Strategic Planning Task Force achieved consensus on the following objectives: • Engage leaders in policy development Position Houston business leaders on local, regional, state and federal policy committees • Establish solid working relationships – Develop strategic collaborative relationships within the 10-county region – Engage the region’s business leaders in local, regional, state and federal committees and initiatives that elevate the region’s visibility • Speak with one voice – Create a unified voice for regional business interests – Promote a unified public image • Promote strengths – Capitalize on current regional strengths – Focus on specific sectors, industries and age groups 50 • Link Partnership goals to emerging trends Create a dynamic mechanism for linking Partnership goals with trends and to data regarding the economic prosperity drivers, thereby anticipating and creating policy initiatives that will build the region’s competitive economic strength • Communicate and lobby based on priorities Initiate a strong, proactive, coordinated and collaborative communications strategy directed toward local, regional, state and federal legislative bodies Vision 4 The Greater Houston Partnership must be the aggressive driver of local, regional, state and federal public policy that makes Houston one of the top four regions in the United States for business. “What the Partnership does better than any other organization in Houston is bring together a broad group of stakeholders to hammer out an issue. I can’t think of any other group with the clout and credibility to be able to serve this role.” The Greater Houston Partnership will build on existing strengths and trends for future growth potential by serving as the primary advocate for key regional business interests and industries. Its collaborative relationships with other organizations in the 10-county region will truly represent regional business interests. The Partnership’s role as convener is an important component in its active involvement in public policy issues that face the region. As the region’s primary business advocate, the Partnership is a strong voice for cooperative action shaping the direction on regional issues that support the organization’s mission. The Partnership works with decision-makers at all levels to ensure the region has the best business environment possible. The I-69 Corridor initiative promises a new trade corridor that will enhance Houston’s role as a trading and distribution center. The Port of Houston and George Bush Intercontinental Airport have experienced tremendous growth that calls for funding for additional improvements. The quality of education, levels of educational attainment, air quality, mobility, public transportation, workers’ compensation, asbestos and tort reform, health care, quality of place, flooding, water quality, subsidence and homeland security are ongoing public policy concerns that affect businesses in the region. The Partnership supports government policies, laws and regulations that enhance the ability of Houston area firms to conduct international business. It monitors issues at the federal level that affect the international business climate and develops advocacy initiatives that represent Member business interests before congressional and executive branch officials. 51 Vision 4 The Greater Houston Partnership must be the aggressive driver of local, regional, state and federal public policy that makes Houston one of the top four regions in the United States for business. The Greater Houston Partnership will create a business tax and regulatory environment that is second to none. In the past, the Partnership joined a statewide coalition to lower the costs of workers’ compensation by pushing for changes in Texas laws. Statutory changes were implemented that provided workers’ compensation beneficiaries with prompt, optimum, nationally accepted medical treatment, with an emphasis on returning to work. In conjunction with statewide tort reform efforts, the Partnership pushed for legislative reforms. The Partnership continues to push for permanent reinstatement of a state sales tax deduction allowance on federal tax returns, which will save Texans nearly $700 million in federal income taxes annually. Over the next decade, the Partnership will continue to set priorities for policy that creates an ideal environment for doing business. “The ideal environment is one that has a diverse economic and ethnic base, offers a high-quality mass transit system and provides employers with a large pool of highly qualified workers. Houston must continue to attract new business to the area, work with governmental organizations on mass transit, air quality and other quality of life issues and foster educational opportunities, both at the high school and higher education levels.” 52 Vision 4 The Greater Houston Partnership must be the aggressive driver of local, regional, state and federal public policy that makes Houston one of the top four regions in the United States for business. The Greater Houston Partnership will serve as the region’s primary public policy advocate for business. The following issues are within the scope of the Partnership’s interests: • Business Development – Economic development – Tax and regulatory issues – World trade and investment • Education and Workforce – Public school accountability – Public school finance – Statewide education reform • Environment – Air quality – Water quality • Health Care – Access and affordability – Cost containment and efficiency – Expansion of research and technology transfer – Integrated regional health care delivery system – Level 1 trauma capacity • Information Technology Infrastructure – Broadband and wireless infrastructure – Emergency response and public safety – Infosystems and networking – Telecommunications • Quality of Place – Aesthetics – Green space – Infrastructure • Transportation and Mobility – Freight rail service – Passenger rail – Urban mobility 53 Appendix “This type of plan won’t happen on its own. In the past, Houston has been the beneficiary of location and the tremendous assets we have attracted in specific fields. Now, we have a new urgency to build regional economic prosperity as a result of global competition, a flattening of the overall playing field and aggressive initiatives from other regions.” 2005 Strategic Planning Task Force Members Jodie L. Jiles 2005 Chairman Greater Houston Partnership First Albany Capital 56 Bruce LaBoon Chairman Strategic Planning Task Force Locke Liddell & Sapp LLP Chip Carlisle 2006 Chairman Greater Houston Partnership Wells Fargo Bank Jeff Moseley President and CEO Greater Houston Partnership Mike Ballases JP Morgan Chase Wayne McConnell McConnell, Jones, Lanier & Murphy, LLP Roland Rodriguez Mir Fox & Rodriguez, P.C. Joseph Dilg Vinson & Elkins L.L.P. Drayton McLane Houston Astros Baseball Club Priscilla Slade, Ph.D. Texas Southern University Charles W. Duncan Jr. Duncan Interests John Mendelsohn, M.D. University of Texas M.D. Anderson Cancer Center Gio Tomasini Tomasini W2K James Edmonds Edmonds & Company David Mendez JP Morgan Chase Stephen Trauber UBS Investment Bank Kelly Frels Bracewell & Giuliani, LLP Charles Miller Meridian National, Inc. Alan Vera The Quest Business Agency, Inc. John Hofmeister Shell Oil Company Walter Mischer Jr. Mischer Investments, L.P. Umesh Verma Blue Lance Harold Hook Main Event Management Corp. Robert Mosbacher Jr. Mosbacher Energy Company Massey Villarreal Precision Task Group, Inc. Bruce Leslie, Ph.D. Houston Community College Patrick Oxford Bracewell & Giuliani, LLP. Richard Weekley Weekley Development Company Jacqueline Martin J.S. Martin Associates, LP Jane Page Crescent Real Estate Equities Strategic Plan Consulting Team SUMA Partners, L.P. www.suma.com Chip Carlisle 2006 Chairman Greater Houston Partnership From Plan to Action As incoming Partnership Chairman, I want to express my personal endorsement of this strategic plan and the process that created it. As Chairman, I will work with the Executive Committee and the Board to institute a process and discipline that will incorporate an annual review of this plan as part of the prioritization and budget process. I will lead aggressive implementation efforts to communicate the precepts outlined in the document to the Board, the Membership and the community at large. I will align our governance, committee structure and priorities to the visions that comprise the core of the Partnership’s strategic focus — business development and public policy. I am excited by the possibilities of developing Houston’s core assets into “magnets” that will create economic prosperity for our Members and regional businesses, that will attract the next generation of knowledge workers and set Houston apart as a global hub for business. We will build the infrastructure and create the public policy environment that distinguishes our region as a “quality of place” leader. I am motivated by the challenges embedded in this document. As a Board, we will inspire others, attract new sources of capital and collaborate with our Members, our stakeholders and other organizations. This strategic plan allows me to set a new precedent for every chairman whose leadership will help move the Greater Houston Partnership toward the fulfillment of our 2015 visions — to embrace, to challenge, to inspire and to align the Board toward the successful achievement of goals and objectives that will take Houston to a new level of distinction over the next decade. I pledge my support and leadership and thank the members of the Strategic Planning Task Force and the community for setting us on a dynamic course. 57 The Greater Houston Partnership wishes to thank the following citizen leaders who provided input on how we may serve the 10-county region over the next decade. Stakeholders Saba Abashawl Executive Director, International Economic Development City of Houston, Houston Airport System Peggy Boice Director of Public Policy United Way of the Texas Gulf Coast Ron Cookston Manager Gateway to Care Dennis Bonnen State Representative District 25 Michael Dee Managing Director Morgan Stanley Iris Correa-Alvarez President Houston Hispanic Chamber of Commerce Ron Bourbeau CEO South Montgomery County Woodlands Economic Development Partnership George DeMontrond President DeMontrond Automotive Group, Inc Angelos Angelou Angelou Economics Kevin Brady United States Representative District 8 Willie Alexander President W. J. Alexander and Associates Charlene Anthony Association General Contractors of America Herb Appel President Greater Fort Bend Economic Development Council Michael McAtamney Director, West Region TIAA-CREF Bill Barnett Director Emeritus Baker Botts L.L.P. Domingo Barrios Grant Officer Houston Endowment John Beddow Publisher Houston Business Journal Andrew Biar Strategic Public Affairs Craig Bland Vice President and General Manager Univision, TV 45 Jack Blanton Director Emeritus Greater Houston Partnership 58 John Breeding President Uptown Houston District Jamie Brewster President and Executive Director Houston Intown Chamber of Commerce Tom Britton President Greater Heights Chamber Mike Byers President Humble Area Chamber of Commerce Kirbyjon Caldwell Senior Pastor Windsor Village United Methodist Church Deborah Cannon President and CEO Houston Zoo, Inc. Nancy Chang President and CEO Tanox Inc. Donna Cole President and CEO Cole Chemical & Distributing Peter Diaz General Manager KHOU-TV, Channel 11 Donna Dishman COO PAWS Houston George Donnelly Managing Partner Lilo Ventures Jack Drake President Greater Greenspoint Management District David Dunlap Managing Partner Jackson Walker, LLP Robert Eckels County Judge Harris County Mark Ellis Council Member At-Large Position 1 Rodney Ellis Senator State of Texas Bob Eury President Central Houston, Inc Peter Evans Group Vice President Jacobs Stakeholders continued Richard Everett Chairman and CEO Century Development Henry Florsheim President and General Manager KTRK-TV, Channel 11 Doug Foshee President and CEO El Paso Corporation Grace Fox TAS Construction Lupe Fraga President & CEO Tejas Office Products, Inc. Mark Fury Special Assistant Harris County Precinct #3 Sylvia Garcia County Commissioner Precinct 2 James Howard Gibbons Editor, Editorial Page Houston Chronicle Shelley Sekula-Gibbs City Council Member City of Houston Ronald Girotto President and CEO The Methodist Hospital System Tara Gresham TD Industries Kenneth Guidry, CPA President and COO Pannell Kerr Forster of Texas Randy Hageman Marek Brothers Systems, Inc. Anthony Hall Chief Admin Officer City of Houston Mary Margaret Hansen President Greater East End District Robert Hebert County Judge Ft. Bend County Don Henderson Vice President and Managing Director Hyatt Regency Houston Thom Herrmann Executive Liaison to the President Memorial Hermann Bill Higgs and Paul Redmon Co-Founders Mustang Engineering Ann F. Hodge President and CEO Katy Area Chamber of Commerce Richard Huebner Executive Director Houston Minority Business Council Helen Huey Consultant HCA David Huntley Vice President, External Affairs SBC Ken Janda Vice President Apogee Jim Jard MetroNational Limas Jefferson Chairman and CEO Jefferson Associates, Inc. Michael Jhin President and CEO Emeritus St. Luke’s Episcopal Health System Rich Kinder President and CEO Kinder Morgan Tom Kornegay Director Port of Houston Authority Bob and Elyse Lanier Landar Holdings, L.P. Quince Godge Linbeck Lee Hogan Executive Chairman St. Luke’s Episcopal Health System Richard Lapin Deputy Chief of Administration City of Houston Jay Gogue President University of Houston Ned Holmes Chairman and CEO Parkway Investments/Texas Carlos Lara Lara and Associates Allen Grainey National Electrical Contractors Association Roger Hord President West Houston Association Jan Lawler President Economic Alliance Houston – Port Region 59 Stakeholders continued Ann Lents President and CEO Center for Houston’s Future Steve Miller Chairman and President SLM Discovery Ventures, Inc. Jim Reinhartsen President Bay Area Houston Econonomic Partnership Herb Lipsman Senior Vice President, Marketing and Business Development The Redstone Companies Darcy Mingoia President Cy-Fair Houston Chamber of Commerce Maurice Robison Vice President – Healthcare Irvine Team Renee Logans President and CEO Access Data Supply, Inc. Gasper Mir III Executive General Manager –Strategic Partnerships Houston Independent School District Olga Llamas Rodriguez Harris County Precinct 2 Yolanda Londono Community Affairs JP Morgan Chase Joseph Montes US Small Business Regional Administration Lisa Rowland Vice President of Sales and Marketing Humana, Inc. Alex Lopez-Negrete President and CEO Lopez Negrete Communications Inc. Francisco Javier Alejo Lopez Trade Representative for North American States Consulate of Mexico Jeff Love Managing Partner Locke Liddell and Sapp, LLP Karen Love Director of Practical Growth Pannell Kerr Foster of Texas, P.C. 60 Eric Munson Regional Advocate, Region IV Small Business Administration James Nadler Senior Medical Director CIGNA HealthCare of Texas, Inc. Tom O’Grady Associate Vice President HNTB Corporation Wayne O’Neil Senior Manager Gilbane Building Company Elena Marks Director of Health Policy-Office of Mayor City of Houston Luis E. Perez Deputy Director of Aviation Marketing, Communications and Community Affairs City of Houston, Houston Airport System Michael McAtamney Director, Western Region TIAA-CREF Sonia Perez Sr. Vice President for External Affairs SBC Tracey McDaniel Executive Director Texas Department of Economic Development Ray Perryman Economist The Perryman Group Raymond Messer President Walter P. Moore and Associates James Raborn Partner Baker Botts Travis Middleton Owner Trademark Insurance Agency Steve Radack Commissioner, Precinct #3 Harris County Jim Royer CEO TCB INC. Kim Ruth President, Houston Region Bank of America Abe Saavedra Superintendent Houston Independent School District Alan Sadler County Judge Montgomery County Robert Sakowitz Hazak Inc. Betsy Schwartz Executive Director Mental Health Association of Houston Marc Shapiro Consultant JP Morgan Chase Jim Slack, Jr. Slack & Company Contracting, Inc. L.E. Simmons President SCF Partners Stakeholders continued Matt Simmons Chairman and CEO Simmons and Company Jordy Tollett President and CEO Greater Houston Convention & Visitors Bureau Fred Welch Executive Director Pearland Economic Development Corporation David Stedman President and CEO Economic Development Alliance for Brazoria County Peter Traber President and CEO Baylor College of Medicine Louie Welch Former Mayor City of Houston Jack Steele Executive Director Houston-Galveston Area Council Ann Travis Office of the Mayor City of Houston James Willerson President University of Texas-Houston Health Science Center Manfred Sternberg President and CEO Bluegate Corporation David Turkel Director, Economic Development Harris County Bill White Mayor City of Houston Michael Stevens Chairman Michael Stevens Interests, Inc. Bob Turnbull Director, Economic Development CenterPoint Energy Damon Williams Executive Director Greater Southeast Management District Kathryn Stream Senior Vice President Texas Medical Center Sylvester Turner State Representative District 139 Ken Williams Executive Vice President Frost Bank Tom Sullivan Chief Counsel for Advocacy SBA Dawn Ullrich Director, Convention and Entertainment City of Houston Larry Williams Marek Brothers Systems, Inc. Jack Sweeney Publisher and President Houston Chronicle Richard M. Vacar, AAE Director City of Houston, Houston Airport System Cynthia Tauss Gulf Coast Regional Representative Economic Development and Tourism, Office of the Governor State of Texas Lori Vetters President, Houston Region Wachovia Bank, N.A. Vic Tamborella CEO VT2 Media Design Bill Teague President and CEO Gulf Coast Regional Blood Center Tom Thierheimer Britain Electric Richard Wainerdi President, CEO and COO Texas Medical Center Mark Wallace President and CEO Texas Children’s Hospital Jacqueline Northcutt Waugh President BioHouston Trish Wise President and CEO Greater Southwest Houston Chamber of Commerce Dan Wolterman President and CEO Memorial Hermann Healthcare System Martha Wong State Representative District 134 Jim Yarbrough County Judge Galveston County Susan Young President South Main Center Association Carrington Weems Weems Interests 61 Definitions Business development (page 12) – A merger of world trade and economic development into a single delivery system measured by new net jobs, capital investment, direct foreign investment and exports. Centers of Excellence (page 25) – Nationally and internationally recognized industries, institutions or organizations that serve to attract research dollars, and knowledge workers as well as drive job growth within their industry cluster. Community development (page 12) – Foundational requirement for business and workforce development that begins with a formal assessment and prioritization. Issues addressed are generally linked to infrastructure and may include cultural or social activities. Economic development (page 12) – The creation of 600,000 net regional jobs and $60 billion in capital investment by 2015 in the 10 county Houston region. The Partnership plans to meet this goal through collaboration with governmental entities, business leaders and institutions. As part of the Partnership’s economic development role, they will also take an active role in marketing the region. Knowledge workers (page 28) – Highly skilled, highly educated, highly paid employees with unique talents. In general, knowledge workers provide skills that cannot be outsourced and provide competitive advantage for their industry cluster. Public policy (page 19) – As primary advocate for the business community to promote regional economic prosperity, the Partnership formulates positions and actively lobbies on behalf of local, state and federal issues. The Partnership requires Board approval for a position to become part of the agenda for lobbying activities. Quality of place (page 43) – An integral component of community development. The Partnership links quality of place to the region’s ability to attract and retain knowledge workers and provide a competitive advantage in workforce development. Regional economic prosperity (page 17) – Economic vitality for the 10-county region (page 62) measured through 2015 by net jobs created, direct foreign investment, exports and capital investment. Regional economic prosperity is the core concept of the Partnership’s mission (page 12). Workforce development (page 12) – Training and retraining of the region’s labor pool to keep the Houston region globally competitive. This is a critical component of community development. NOTE: Quotes used throughout this document are by stakeholders listed on pages 57-60 unless otherwise attributed. 62 What is the Greater Houston Partnership? With a rich tradition of exceptional civic leadership, the Greater Houston Partnership is the region’s premier volunteer-driven business organization. The Partnership fulfills the multiple roles of a traditional chamber of commerce, an economic development organization and an international trade association. The Partnership is governed by a 138-member Board of Directors. Each director is the top regional official of their Member company, and collectively the directors are responsible for setting overall policies for the Partnership. The volunteer work of the Partnership is conducted through an extensive and diverse committee structure, which includes four “Board-only” committees, 10 high-level “advisory” committees and 47 other committees and task forces. Overall, 2,500 volunteers are actively involved in the development and implementation of the organization’s policies and programs. A professional staff of 79, supports the work of the volunteer leaders. The success of the Partnership, in executing the strategic and annual plans of the organization, depends on the active involvement of the Member companies’ executives and select employee representatives. The nearly 2,000 Member firms of the Partnership span the entire Houston region and represent a cross-section of dedicated, civic-minded companies and institutions — both large and small. While two-thirds of the Partnership’s Members have fewer than 50 employees, the vast majority of the region’s Fortune 500 companies are actively engaged in Partnership initiatives on a daily basis. San Jacinto Montgomery Liberty Austin Waller Harris Chambers Fort Bend Galveston Brazoria 63 www.houston.org