Federal Reserve Bank of Dallas Report – Why Heart of Texas Leads Startup Activity in USA
“At the Heart of Texas: Cities’ Industry Clusters Drive Growth” is a new report from the Federal Reserve Bank of Dallas.
This report is a comprehensive look at the industry clusters, history and demographics shaping eight of the state’s key metropolitan areas: Austin, Dallas, El Paso, Fort Worth, Houston, McAllen, Midland-Odessa and San Antonio.
For each city, the report’s authors identify the dominant industry clusters, those that exceed the national average in their share of employment, that drive that city’s economy.
By looking at industry profiles within the context of each city’s history and demographics, the authors provide a snapshot of the city’s growth outlook and future challenges.
Kauffman Startup Activity Index rank (2015): #1 Austin, #8 Houston, #10 San Antonio, and #15 Dallas.
For comparison, San Jose (Silicon Valley area) is ranked #3, Los Angeles #4, San Francisco #6 and San Diego #9.
The Kauffman Index: Startup Activity focuses on new business creation activity and people engaging in business startup activity in the 40 largest U.S. metropolitan areas.
Other important talking points:
– Austin’s highly educated workforce provides a key competitive advantage that attracts high-tech businesses.
– Houston’s economic diversification from its energy base won’t allow it to escape pain from the oil price collapse.
– Dallas’ large and growing business and financial services sector should lead to continued growth as the state economy slows.
– El Paso has a mature government presence led by the sprawling Fort Bliss, which provides stability but is also vulnerable to federal budget cuts.
– In San Antonio, the presence of two large military medical-related facilities has helped promote growth in the health and biomedical sectors.
SOURCE: Federal Reserve Bank of Dallas