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OppOrtunity HOustOn | 1

cOntEnts

Opportunity HoustonSM is an aggressive ve-year marketing program that generates leads for economic developmentorganizations throughout Houstons 10-county region. A direct result of the Greater Houston Partnerships 10-yeaStrategic Plan,Opportunity HoustonSM will help create 600,000 regional jobs, attract $60 billion in additional capitalinvestment and increase foreign trade by $120 billion for the greater Houston area.Opportunity HoustonSM targets ve major economic sectors identi ed by The Perryman Group as critical to Houstons future prosperity: Aviation aaerospace Energy and petrochemical Life sciences and biotechnology Information technology Nanotechnology

Departments3 lETTER

From the Greater Houston Partnership

6 REGIoNAl UPDATEBusiness growth around the region

10 VISIoNARIESJack Fusco, Calpine

36 CUlTUREThe Woodlands

38 ART SCENEHoustons art happenings

39 MY HoUSToNTheres no place like Houston

Features13 HOustOn cHrOniclE 100

Business awards program ranks Houstons hottest companies

14 HOustOn rEgiOn: tHEHEAdQuArtErs fOr HEAdQuArtErsTwenty-f ve Fortune 500 companies call Houston home

22 AnAtOMy Of lOcAting AcOrpOrAtE HEAdQuArtErsThe science o ideal corporate headquarters locations

26 HOustOn rEgiOn And tEXAs OnsHOW At sHAngHAi WOrld EXpO 2010A cultural exchange between China and the Houston region

30 MApping HOustOns HEAdQuArtErsThe commercial real estate scene in the region

32 cHAngE is HErE, WitH MOrE tO cOMEResults rom the 2010 Houston Area Survey

pHOtOs: us OncOlOgy; (tOp) tEXAs MOn

tHly

12

36

UPCOMING FOR FALL

In the next issue we wi c ver h w theH ust n regi n is unique y qua i edt exce in the distributi n and

gistics industry. Artic es wi inc udehappenings at the p rt and the airp rt

system, the regi ns c mmitment tthe industry, as we as c verage n theBreakbu k 2010 C nference and Exp .

Summer 2010


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How do you fast-track successin a slow economy?Do business in Houston.

www.houston.org

U.S. Bureau of Labor Statistics (as reported by the Houston Business Journal) July 2010

Fortune April 2010

Our award-winning international economic development team is on standby to provideexpedient access to the regions vast business opportunities, titans of industry, innovationleaders, regional allies, capital investment opportunities, Certi ed Property Program, skilled

and energetic work force, international trade connections, and leading-edge research andanalysis data.

713-844-3647

H oust on L e ads U .S. in J ob Gr ow t h( 20 0 5-20 10 )

H ome t o 25 F or t une 50 0 H e adquar t e r s- 3r d M ost in t he U .S.

ACCRA Cost of Living Index 1st Quarter 2010T op T e n M

ajor M e t r o Ar e asw it h L ow e st C ost of L iv ing

U-Haul International April 2010T o

p De st inat ion C it y

Seabury APGdat February 2009H oust on Air por t Sy st e m4 t h L ar g e st in t he U nit e d St at e s

Houston InternationalProtocol Alliance April 2010

9 2 C onsulat e s - 3r d M ost in N at ion

U.S. Army Corps of Engineers,Waterborne Commerce Statistics Center 2009

P or t of H oust on 1st in t he U nit e d St at e sin F or e ig n T onnag e

Forbes.com June 2010 Be st C it y f or Y oung P r of e ssionals


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Greater Houston Partnership Letter

Calpine, the nations larg-est independent wholesale power

producer, is a prime example o amultinational company choosing toheadquarter in the Houston region.The company moved its corporateo fces rom San Jose, Cali ornia toHouston last year. In this Opportunity Houston magazine, Calpines Presi-dent and CEO, Jack Fusco, outlineshis companys behind-the-scenesreasons or selecting Houston astheir home base.

In order to show our readersmore about the selection process

or choosing a headquarters site,we talked to THE authority on cor-porate site selection, Robert Ady,President o Ady International. Bob,the dean o site selection pro es-sionals, has been in the business o working with companies looking torelocate their headquarters or morethan 30 years. He makes it clear that corporations make relocation deci-sions on a subjective level, and that each one has to base its move on its

own set o requirements. Dependingupon a companys needs, there area ordable options everywhere in theHouston area.

Our eature on commercial realestate notes that top energy, bank-ing, legal, and accounting businessesare headquartered in our thrivingcentral downtown. A good point isalso made or the 30 to 40 percent o undeveloped land where compa-nies can select build-to-suit optionsor take advantage o proximity to theship channel or area airports. As a

third possibility, we have newer com-munities that are taking hold with

prime examples o suburban cam-pus headquarters. And to assist com-panies with location data and real-estate listings, the Greater HoustonPartnership o ers our GeographicIn ormation System as a real-time,multi-layered mapping resource.

In our article on the ShanghaiWorld Expo, youll see that GHP haspartnered with our state and the city to vigorously promote the region tothe international business communi-ty. In addition to co-sponsoring theUSA Pavilion at the expo, GHP alsoorganized multi-city tours so that Houston businessmen could meet with leading Chinese corporate andgovernment o fcials. Mayor AnniseParker conducted her frst interna-tional mission to China. Her meetingswith the mayors o Beijing, Shanghai,and Chongqing opened with a warmgreeting and Houston is the stron-gest regional economy in America.

I you are planning a head-

quarters relocation or expansion,the Houston region should be topo mind. But dont take our word

or it. Check out Houstons high-ly acclaimed business climate at www.houston.org. And see what Forbes, Fortune, Business Week, MSNBC,Newsweek,and other trade publica-tions are saying about the Houstonadvantage!

Jeff Moseley

President and CEO Greater Houston Partnership

for more information ,contact us at :

1200 Smith, Suite 700Houston, TX 77002phone 713-844-3600

fax 713-844-0200www.houston.org

P.S. I you would like to know more about relocating a business to our region,Craig Richard, our Chie Economic Development O fcer, is standing by to takeyour call! He can be reached at 713-844-3612 or c [email protected].

id you know the Houstonregion has more Fortune 500 headquarters locatedhere than Los Angeles?

More Fortune 500 headquarters thanAtlanta? More Fortune 500 headquar-ters than the entire state o NorthCarolina? In act, Houston goesback-and- orth with Chicago or sec-ond place and is third only to NewYork in Fortune 500 headquarters.This is no accident. Our Houstonregion gives headquarters op-erations a tremendous strategicadvantage!

The acts speak or themselves.Twenty-fve o the 2010 Fortune Global 500 list have chosen to establishtheir corporate headquarters right here. Our Houston region providescompanies with what they need tomanage their daily operations, totravel and ship conveniently, and ahighly pro essional work orce.

HereS AN OPPOrtUNItY FOr YOU tO Be HeArD

send y ur c mment r idea f r future i ue tOpportunity Houston,P.o. B x 1569, Au tin, TX 78767 r inf @ pp rtunityh u t n. rg.


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4 | OppOrtunity HOustOn

eYe ON HOUSTON Outdoor Art

ART IN THe SUN

Points of View,by James Sur s, wasrecent y returned to Market SquarePark a ter undergoing restorationtreatments. James Sur s has taughtat the University o Houstons Schooo Art and was the ounding director

o the universitys lawnda e Art andPer ormance Center. The scu pture,origina y created in 1992, is part othe City o Houstons extensive pub icart co ection. Guided by communityinput, Market Square Park has a soexperienced a recent redesign in or-der to better re ect the spirit o thecommunity. for more in ormation,visit www.houstonartsa iance.com.


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Youre not the onlyone in Houston whowants your businessto be o -the-chartssuccessful!

We Do Too!

houston.orgOur award-winning regional economic development team is on standbyto provide expedient access to the regions vast business opportunities,titans of industry, innovation leaders, regional allies, capital investmentopportunities, Certi ed Property Program, skilled and energetic work force, international trade connections, and leading-edge research andanalysis data.

So reach out to your local Economic Development office at the GreaterHouston Partnership today to learn about business retention andexpansion offerings throughout the Houston ten county region.

You have resources, options, incentives and major supporters youmight not even know about. Call Chad Carson at 713-844-3614 oremail [email protected].

Your success is our success. Economic Development Team

Greater Houston Partnership

prEsidEnt And cEO

Jef Mose ey

EXEcutiVE VicE prEsidEnt And cOO

Tracye McDanie

MAnAging EditOr And sEniOr VicE prEsidEnt,

MArKEting And cOMMunicAtiOns

Marti Boone

cHiEf EcOnOMic dEVElOpMEnt OfficEr

Craig J. Richard

cHiEf finAnciAl OfficEr

Ron Jeffers

sEniOr VicE prEsidEnt, MEMBEr sErVicEs

Susan Asimakis

sEniOr VicE prEsidEnt, puBlic pOlicy

Russe Reese

sEniOr VicE prEsidEnt, intErnAtiOnAl BusinEss

And WOrld trAdE cEntEr HOustOn

Cody M. Sutton

puBlisHEr

David B. DunhamprOjEct MAnAgEr dEsign

Caro yn Chavana Graphic Engine Design

WritErs

Anju i B air, Nathanie Janes, Deborah Mann lake, Katie McCarthy,Ken Schneider, Troy Schu ze, Matt Smith, Dayna Stee e

cOpy EditOr/prOOfrEAdEr rEsEArcH And fAct cHEcKingJan McInroy leigh Morgan

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Director, Mike McKee, 512-320-6934Advertising Sa es Manager, Rebecca Akins, 713-960-5099

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Breaking Ground

Regiona l update News & Information

Business growth around the region

predominantly abricate custom-heat-trans er equipment that services thepetrochemical and chemical indus-tries. The projected completion dateis the third quarter o 2011. The plant will eature a weld, machine and as-sembly shop that will also include aclean room or high-alloy welding.

This project is an expansion o Brask-IEE, which is located in Sul-phur, Louisiana. www.ieeinc.net.

Mo ey Ma ageme ti ter at o al electsugar La d for relocat o

Money Management International(MMI) announced plans to locate itsheadquarters

in Sugar

Land, a project that will bring morethan 350 jobs and $3 million in capi-tal investment to the city. The com-pany plans to occupy approximately 87,000 square feet in the newly reno-vated Lake Corporate Center, 14141Southwest Freeway.

Money Management International,incorporated in Texas in 1997, and its

amily o local agencies make up thelargest nonproft, ull-service credit counseling agency in the UnitedStates. The company has providedconfdential fnancial guidance, f-nancial education, counseling and

debt management assistance to con-sumers since 1958. With multiple o -fces in the Houston region, the com-pany per ormed a regional search

or a location to consolidate its op-erations. To attract MMI, the Sugar

Land Economic Development Department cra ted anincentive package ea-turing a direct incen-tive rom the Sugar

Land Development Corporation. The

company select-ed Sugar Landas the location

or its corporateheadquarters as

well as the consoli-dation o numerous

operations.We are pleased to wel-

come Money Manage-ment International and

Bra k i c., neelabreak grou d pearla dMembers o the Pearland City Coun-cil, Pearland Economic Development Corporation (PEDC) board mem-bers, Mayor Tom Reid, City ManagerBill Eisen, city sta , honored am-ily, riends, and guests o Brask Inc.,Neela were present on Tuesday, June22, 2010, or the groundbreaking cer-emony o Brask Inc., Neela.

Construction on 9.45 acres withinPearlands industrial park symbolizesthe commitment Brask Inc., Neela hasmade to the city to build a state-o -the-

art manu acturing complex that whencomplete will total an approximately $6 million capital investment inthe community.

Brask Inc., Neela will employ 27 people in its frst ull year o operation, with projectedgrowth being upwardso 100 employees.This acility will


9/44


its employees to Sugar Land, saidCity o Sugar Land Mayor James A.Thompson. The addition o MMIscorporate headquarters to the citysever-expanding list o corporate resi-dents urther establishes Sugar Land

as a premier employment center inthe Houston region.Sugar Land, located in the south-

western portion o the HoustonBay-townSugar Land MSA, is one o the

astest-growing cities in Texas andis consistently selected as one o thenations top communities to live andwork. Sugar Lands avorable busi-ness climate touts a highly educatedwork orce, a major corporate airport with U.S. Customs services and morethan 20 million square eet o com-mercial space in its business district.Recognized as a major regional em-ployment center, Sugar Land contin-ues to attract new corporate partnersto expand its existing corporate pres-ence, which includes Minute Maid,Tramontina USA, Noble Drilling,Fluor Corporation, Schlumberger,Bechtel Equipment Operations, Aet-na and many other national and in-ternational corporations.

H-E-B pur hases si e forew s ore i the Woodla ds

H-E-B has purchased a 14.6-acre siteon FM 1488 and Kuykendahl Roadin The Woodlands Village of AldenBridge, according to Dan Leverett,

Vice President, Commercial for TheWoodlands Development Company.It will be the third H-E-B store in TheWoodlands.

The Woodlands has been a very success ul market or us, and we look

orward to expanding our presence inthe community, said Richard Gold-en, Director o Real EstateHoustondivision o H-E-B.

H-E-B, with sales o more than $15billion, operates more than 300 storesin Texas and Mexico. Known or itsinnovation and community service,H-E-B celebrated its 100th anniver-sary in 2005.

co i e al Airli es a ou esew daily servi e from Hous o

hub o Lagos, nigeriaContinental Airlines announced

plans to launch new daily nonstopfights between Houston and Lagos,Nigeria, beginning November 10,

2011, subject to government approv-al. It will be the rst daily scheduledservice o ered between Texas andA rica by any carrier.

Lagos will be Continentals rst destination in A rica and the 30th

city in its transatlantic route network.It is the second new international des-tination announced in the last monththat will be served nonstop romHouston, Continentals largest hub.Continental currently serves 63 inter-national destinations nonstop romHouston and recently announcedplans to begin nonstop service be-tween Houston and Auckland as o November 16, 2011, subject to govern-ment approval.

With the addition o fights to A -rica, Houston will become one o just

our cities in the worldand the only city in the Western Hemispheretoprovide nonstop service to every in-habited continent on the globe.

We are excited to continue to ex-pand our international route network

rom Houston by adding nonstop ser-vice to Lagos, said Je Smisek, Con-tinentals Chairman, President andChie Executive O cer. This fight

Lake Corporate Center, Sugar Land


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11/44


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10 | OPPORTUNITY HOUSTON

Forward ThinkingBY KEN SCHNEIDER

Calpines Jack Fusco leads the cleanenergy producer into a bright future

VISIONARIES Jack Fusco

In 2009, Calpine, the nations largest wholesale independent power pro-ducer, moved its corporate of cesfrom San Jose to Houston. President and CEO Jack Fusco would be the rst to say that Houston was the logi-cal choice. It simply makes sense forCalpine to be here. Were capable of providing nearly 29,000 megawatts of clean, cost-effective, reliable and fuel-ef cient power from 93 power plantsto customers and communities in 21U.S. states and Canada.

As the Energy Capital of the World,Houston offered a unique mix of ad-vantages that other locations didnt.

More speci c to our busi-ness as an independent powerproducer, the state of Texashas established a stable, well-functioning, deregulated mar-ketplace for electricity, saidFusco. Its central location toour other important marketsin California and the East,along with multiple airportsand competitive airline ser-vice, makes it a compellinglogistical choice.

More particularly, Houstonis a great place to do business.

In addition to a deep, expe-rienced, well-educated workforce that understands ourindustry inside and out, Hous-ton offers a diversi ed andresilient economy and a busi-ness-friendly tax structure.

For our employees, Houston providesreasonably priced housing and a com-fortable standard of living.

Calpine is also a vital energy part-ner and provider to the region. Fusconoted that they operate almost 10percent of the total installed electricgeneration capacity in Texas, andeight of their 12 power plants in thestate are located in the region. Most of these plants are combined heat and power facilities that concur-rently and ef ciently produce powerand steam for industrial clients. Alsocalled cogeneration plants, these fa-cilities are vital to their customersalong the Houston Ship Channel,

who themselves are vital to the Hous-ton economy. He went on to note that Calpine is an important part of keep-ing the lights on and the residents of Houston cool. Finally, as the largest consumer of natural gas in the coun-try, Calpine helps support local anddomestic natural gas production that helps create jobs and assures a securesource for their fuel needs.

Calpine offers clean, environmen-tally friendly power. Environmentalleadership has been a governing prin-ciple for Calpine since it was foundedmore than 25 years ago, said Fusco.

We remain committed to safely andresponsibly meeting the needs of aneconomy that demands cleaner, morefuel-ef cient and reliable sources of electricity. Our greenhouse gas foot-print is the smallest in the industry.We accomplish this by focusing onclean-burning natural gas and renew-

Jack Fusco

Deer Park Energy Center


13/44


able geothermal generation, and that is what sets us apart rom our com-petitors.

Two good examples o how the com-pany backs up this vision with actions:

First, earlier this year, they ob-

tained an air quality permit or aplant to be built near San Fran-cisco that is subject to a rst-everlimit on greenhouse gas emissions.They voluntarily agreed to abideby stringent carbon emissions lim-its and are the rst power company in the nation to take such a step.

Second, in April they contractedto buy 19 plants in the Mid-Atlan-tic region, two o which were beingoperated on coal, and announcedthey would discontinue the use o coal upon closing the acquisitionand instead operate the plants on

ar cleaner natural gas.While many power companies

struggle with the imperative o bal-ancing reliability with sustainability,Calpine, through sound environmen-tal practices, disciplined manage-ment and detailed ocus on opera-tions and costs, is blazing new trailson Americas journey toward a clean-power uture.

In Texas and other states, Calpinesnatural gas plants serve multiple criti-cal unctions in the electric system.First, some of their plants operate 16or more hours a day in many markets,providing a steady, reliable supply o power to their wholesale custom-ers. Second, some plants, although

capable o running more,are used primarily duringthe day when demand stepsup. Third, their cogenera-tion plants create the steamcritical to Americas indus-trial production in a highly e cient manner that isencouraged by the U.S. De-partment of Energy. Final-ly, many plants are highly fexible and can be quickly turned on or ramped upto meet peak loads on very hot or very cold days whendemand is greatest and,

in this era o increasing productionrom intermittent renewable sources

like wind and solar, to help keep thegrid reliable.

In describing how Calpines ap-proach to operations sets the com-

pany apart, Fusco said, Since Ijoined the company two years agoand moved the headquarters hereto Houston, we have implementeda centralized model that providespolicies and support to our plantsin a variety o areas ranging romprocurement to engineering to en-vironmental health and sa ety. Most importantly, we have pushed greaterresponsibility and accountability toplant management and employees ortheir operating per ormance. This ap-proach maximizes our buying power,

saving us tens o millions on anannual run rate, and allows our em-ployees across the country to sharebest practices, while also improvingeach plants operating metrics.

Calpine is well positioned to supply

e cient, clean power well into theuture. When asked i there are obsta-cles or speed bumps ahead that coulda ect growth, such as impendinggovernment legislation, upcoming en-vironmental restrictions, technologi-cal limitations, or market conditions,Fusco replied, Trends that might beobstacles or some o our competitorsactually present signi cant opportuni-ties or Calpine, he replied. Whetherit happens tomorrow or next year orin three years, we can be certain that stricter environmental regulations or

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the power sector are inevitable.That said, Calpine has not waitedor government or regulators to tell

us what to dowe have taken the ini-tiative to adopt environmentally re-sponsible practices across our eet.

With respect to the markets, youwill recall that almost 20 years agoCongress set the power industry ona course toward competitive genera-tion markets, giving the states widelatitude on how to implement that national goal. Those markets havedemonstrated that competition in thewholesale generation o power hasbenefted the consumers in all majormarkets, including the Electric Reli-ability Council o Texas (ERCOT),by delivering lower prices than wouldhave been possible under a ully regu-lated, monopolistic regime. The ma-jor markets have matured well, yet likeall competitive markets they need toremain ever vigilant and receptive tochange to assure that the correct pricesignals are being sent to companiesthat are capable o investing in thosemarkets so that uture generationswill have reliable, a ordable power.A major plant involves a capital com-mitment approaching $500 million or

more, plus years o planning, permit-ting and construction. I the market isnot permitted to send a clear signal toinvestors such as Calpine that it will beable to make a air return on its invest-ment, the capital will not be allocatedto that market, and i others see it the same way, the market could be inshort supply, with consequent impact on price volatility. For this reason, wecontinually engage with market ad-ministrators and oversight regulatorsto advocate or air and open marketsthat do not distort these signals, orthe long-term health o the market and the economy.

With visionaries like Jack Fuscoleading important energy playerslike Calpine, the Houston region hasadded yet another impressive jewel inits crown as the Energy Capital o theWorld. And we look orward to hear-ing more rom Fusco and Calpine inthe months and years ahead.

CONGRATULATIONS GHP MEMBERWINNERS OF THE CHRONICLE 100

THANK YOU FOR HELPING HOUSTON LEAD THE NATION INGROWTH AND ECONOMIC PROSPERITY

TO THE GREATER HOUSTON PARTNERSHIP

Join GHP today!Visit us online at houston.org.

AdministaffAtwood OceanicsBaker HughesBJ ServicesBMC SoftwareCalpine CorpCameron InternationalCenterPoint

ConocoPhillipsCooper IndustriesEl Paso Pipeline PartnersEnbridge Energy PartnersEnterprise Products PartnersFMC TechnologiesGroup 1 AutomotiveHalliburtonKBRKirby Corp.Marathon OilNational Oilwell VarcoOceaneering InternationalOil States International

Parker Drilling Co.Plains All American PipelinePride InternationalSchlumbergerService Corporation InternationalSpectra EnergySysco CorpTarga Resources PartnersWaste ManagementWeatherford InternationalWeingarten Realty InvestorsWestlake Chemical Group

The Greater Houston Partnership is the primaryadvocate of Houston's business community and isdedicated to building regional economic prosperity.


15/44


HoustonChronicle 100

HIS YEARS Houston Chronicle 100, the newspa-pers annual ranking o the regions top 100 publiccompanies, produced several surprises. In additionto the usual energy-related companies, the 2010

list included frms involved in everything rom discountedmenswear to uneral arrangements, trash collection toadult entertainment, car dealerships to medical waste.

Energy remains the li eblood o much o the Houstoneconomy. More than hal o the companies on the list,and six o the top ten, are in the energy industry. Accord-ing to Loren Ste y, business coulmnist or the newspaper,Houstons economy remains heavily in uenced by oiland natural gas prices.

The Chronicle 100 list, prepared or the newspaper by Standard & Poors Capital IQ, ranks Houstons top publiccompanies by a score based on our measures o fnan-cial per ormance in 2009: total revenue, revenue growth,earnings-per-share growth and one-year total return toshareholders on a dividend-reinvested basis.

The companies are ranked in each category, and thoserankings are averaged to orm the Top 100so the lowest number represents the highest rank.

This years winners include: Administa , Atwood Oce-

anics, Baker Hughes, BJ Services, BMC So tware, CalpineCorp., Cameron International, CenterPoint, ConocoPhil-lips, Cooper Industries, El Paso Pipeline Partners, EnbridgeEnergy Partners, Enterprise Products Partners, FMC Tech-nologies, Group 1 Automotive, Halliburton, KBR, Kirby Corp., Marathon Oil, National Oilwell Varco, OceaneeringInternational, Oil States International, Parker Drilling Co.,Plains All-American Pipeline, Pride International, Schlum-berger, Service Corporation International, Spectra Energy,Sysco Corp., Targa Resources Partners, Waste Manage-ment, Weather ord International, Weingarten Realty Inves-tors and Westlake Chemical Group.

Laura Goldberg, Business Editor o the Houston Chronicle, said that the rankings give an accurate annualsnapshot o the past years per ormance o the regionseconomy. For the past 13 years, the Chronicle 100 hasshowcased the per ormances o Houston public compa-nies, giving the community a sense o the depth o thecorporate landscape in Houston. It also gives the Chron- icle a chance to highlight di erent companies each year.Its valuable in ormation or anyone who wants to knowwhats going on in the Houston economy.

For in ormation, visit www.chron.com/business/100/.

by ken schneider

Signature business awards programranks Houstons hottest companies


16/44


HOU STON RE GIO N

Twenty-fve Fortune 500 companies call theHouston region homeBY ANJULI BLAIR

The headquarters for headquarters


17/44


As tHe siXtH-lArgest m o a a h o , hHo o m opo a o hom o mo ha 5 m op op a d a ho o b . th a h ecap a o h Wo d a b m ad , h a a a -

a a ma o ompa a d . O h om-

pa o h 2010Fortune 500 , 25 hav h o po-a h adq a o a d a d a o d h Ho o m o

a a, a do ma o h o hFortune 1000 . Amoh m a h op am a ca p , Wa Ma a m ,

fMc t h o o a d s o. i a , Ho o a k h d h a o , a o n w yo k a d ch a o. i add o

o h a a ma o po a h adq a , a v amb o a o a ompa h u.s. adm -a v h adq a om h 10- o o . tak a ook

b ow o a amp o h ompa ha hav mad Ho -

o h o po a hom a d o wha k p h m h .

Houston ranks third on the Fortune 1000 ,after only New York and Chicago

KBROne o the worlds oremost engineering procurement

and construction companies, KBR dates back to the ear-ly 20th century. In 1901 Morris W. Kellogg opened what would later be known as the engineering frm M. W. Kel-logg. Advances made by M. W. Kellogg laid the oundation

or the petroleum refning and petrochemical processingacilities and included building the worlds frst catalytic

cracking acility and Europes frst crude oilbased liquidethylene cracking acility. A ter a success ul and impres-sive nine decades on its own, M. W. Kellogg was purchasedby Dresser Industries in the late 1980s.

A ter World War I ended, brothers George and HermanBrown, along with their brother-in-law Dan Root, createdBrown and Root, a construction company based in Hous-ton. The company grew quickly and by 1940 had receiveda contract to build the Corpus Christi Naval Air Station.The success o that undertaking led to a second contract,to build a ship or the U.S. Navy. In the years to come,Brown and Root would construct 359 vessels or the navy.

The companys business then moved rom on the sea to inthe sea as Brown and Root took a major step into o shorerig building. The company achieved an amazing eat when it erected the frst o shore oil plat orm 43 miles o the coast o Louisiana in 1947. Soon Brown and Root stood out asa leading o shore rig builder, road construction company


18/44


and general contractor, and the com-pany was bought by Halliburton. Eigh-teen years a ter that frst Louisiana oilplat orm, Brown and Root accomplishedanother frst, this one on the other sideo the pond: it built the frst o shore oil

plat orm in the North Sea.Halliburton later purchased DresserIndustries and combined M. W. Kelloggwith Brown and Root to create KelloggBrown and Root, or KBR. K BR remainedpart o Halliburton until its separationin 2007.

The Houston-based company is now amain contractor or the U.S. Department o De ense, the largest contractor or theU.S. Army, and sits at #193 on the Fortune 500 list. KBR has an extensive scope o divisions, which include but are not lim-ited to Gas Monetization, In rastructureand Minerals, North American Govern-ment and De ense, Oil and Gas, Powerand Industrial, Services, and Technology.That scope was recently broadened when,in 2008, the Services division acquired acompany out o Alabama called BE&K,opening the door or KBR to make its way into the power, chemicals, pharmaceuticaland health-care industries.

Even as the companys business hasevolved to serving clients and customers

in over 45 countries around the world, theroots o KBRs business are grounded inHouston, said Heather Browne, Directoro Communications. That legacy remainsthe oundation or the companys businessand is a driving actor in why KBR remainsheadquartered in Houston.

Staying true to its Houston roots, KBR takes a proactive approach to maintain-ing important community relationshipsby participating in and sponsoring many community events. In 2009, members o KBRs Impact Young Pro essionals raisedover $220,000 or Houston-area charitiesby organizing a Master o the Green chari-ty gol tournament. In another KBR-spon-sored event called Wreaths Across Amer-ica, employees honored allen soldiers by placing wreaths at the soldiers headstonesin both the Houston and the Raleigh Na-tional Cemeteries. KBR also raised nearly $50,000 through sponsorship and partici-pation in the Susan G. Komen NationalRace or the Cure.

FOUNDED IN the all o 1980, international leader in business servicemanagement and award-winning company, BMC So tware has rootsdeep in the heart o Texas with its corporate headquarters located inHouston and another o fce in Austin. As IT has evolved to be a critica lpart o many businesses, BMC has emerged as a leading provider o solutions that manage IT assets and ensure that a companys technol-ogy is responsive and supportive o the overall business. BMC providesa broad plat orm o solutions that help its customers cut costs, reducerisk and drive business proft.

BMC counts enterprise heavyweights such as Accenture, Cisco, Dell,Sales orce.com, Microso t, Oracle, SAP and IBM as key partners. In

act, a whopping 80 percent o the Fortune 500 list rely on BMC So t-ware or their businesses. In 2009, BMC won the 22nd annual CIO 100Award rom CIO Magazine. The award, whose recipients accomplish-ments are scrutinized by a team o 40 judges, honors 100 IT companieswho are implementing e ective and innovative internal IT solutionsthat create business value. Employing over 6,000 people world-wide,BMC is No. 872 on the 2010 Fortune 1000 list. For the our fscal quar-ters ended June 30, 2010, BMC revenue was $1.92 billion.

BMCSOFTWARE


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US

ONCOLOGY

LEADING THE WAY in cancer care, research and patient advocacy, as well as holding the #646 slot on the Fortune 1000, is US Oncology, based in The Woodlands. Many know the name US Oncology, but what they may not knowis that more than 850,000 patients nationwide have beenaided by the organization, whose aim is to bring the latest and most e ective cancer care to every community. That aid has been supplied through the more than 500 carecenters that are associated with US Oncology, includingapproximately 100 centers or radiation and 1,300 physi-cians. Assistance also comes by way o fnancial support,totaling over $80 million or more than 10,000 patients.

Creating the largest research and cancer care network o-cusing on the individual community, US Oncology bringstogether physicians specializing in each disease type andencourages collaboration or continued progress and innova-tion. All segments o US Oncology are vital to those it reaches,but one area that demands notice is its research division. Con-ducting every phase o clinical trials, US Oncology has helpedto develop 40 new FDA-approved cancer treatments collabor-atively with the nearly 43,000 patients who have participatedin research studies. Those new treatments make US Oncol-ogy a major player in recent cancer care advancements.

US Oncology opened its corporate headquarters inThe Woodlands in March 2009. David Bronsweig, Ex-ecutive Vice President o Human Resources, said TheWoodlands was the obvious choice or the company. Thestrong business presence, good economy, relatively lowcost o living and diversity make the community very ap-pealing to those who already call it home and to poten-tial employees alike.

The Woodlands is an attractive community to raise aamily, Bronsweig said. The public schools are some o

the best in the Houston area, and there are several top-notch private schools available. The amenities are plen-ti ulgood cuisine, great entertainment, nice culturaleventsand most important, the community is a sa e en-vironment. Bronsweig added that the scenic Texas HillCountry, proximity to the coast and escape rom harshwinters are other distinctions that defnitely arent scaringaway any prospective recruits.

As a national company in an increasingly competitiveindustry, US Oncology uses the appeal o The Woodlands,the selection o local talent and the avorable Houstoneconomy to urther its success. Bronsweig has been withthe company or more than two years and said that in that

being in Houston, which is rich in humancapital in health care and usiness, helpsus stay strong and manage the challenges

of the economy and health-care headwinds.David Bronsweig,Executive Vice President,Human Resources, U.S. Oncology


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THE RECORD-BREAKING FMC Technologies has

come a long way from its beginnings as a late-19th-cen-tury California spray pump company to its designationas Fortune s Worlds Most Admired Oil and Gas Equip-ment Services Company for 2010. What began as the

time he hasnt seen the Houstoneconomy go through the down-turn that the rest of the nationhas suffered.

The Houston economy has re-mained relatively strong in light

of the recent economic down-turn, Bronsweig said. Otherthan a slight slowdown in hiring,there doesnt seem to have beena substantial impact on the busi-ness climate.

US Oncology has been doingits part to contribute to the pros-perous Houston economy. Overthe last several months it has in-creased its recruiting efforts andhas been drawing from the talent available in the local work forceto support and grow the orga-nization. Though the company enjoys a great deal of potentialin this situation, there is still oneroadblock that US Oncology andthe rest of the health-care indus-try can count on: cost control.

We have and will continue tohave challenges with cost controlin health care, said Bronsweig.Being in Houston, which is richin human capital in health care

and business, helps us stay strongand manage the challenges of the economy and health-careheadwinds.

INTERNATIONAL CONNECTIONS

W h Ho o ex e ve o e g ade a d a e oo e a o d he wo d, he dema d o oda a - a ed a d

h gh om e ve e a o a e e v o me a e me

w h he e o e eq ed o o om a e .Ho o o e g omme a e ex eed 3,100 m a do ga za o ad g mo e ha 259 e o od a d

e v e 17 eg o a o d he g o e.

A e e , mo e ha 800 m he Ho o eg o(w h 137 headq a e ed Ho o ) ma a mo e ha36,000 d a o a o 196 o e .

fo e g m e e e g 60 o e o e a e 975d a o a o he Ho o eg o .

fo e g co a e re e e a o a d i e a o a ba k

fo e g gove me have e a hed 92 o a o eme o o a Ho o , a k g Ho o h d eh d na d lo A ge e .

twe ve o e g o e have e e e a o h o gh H22 o e g a k .

SOURCE: Greater Houston Partnership;Texas Govenors O fce; Uniworld Business

fMctecHnOlOgies


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ORIGINALLY ESTABLISHED in San Jose, Cali ornia, inthe mid-80s, Calpine Corporation is # 338 on the Fortune 500 list. The ability to provide clean, cost-e ective, de-pendable and uel-e cient electricity all over the U.S.and Canada has shot Calpine into the limelight as oneo the nations leading power companies. Operatinglow-carbon, natural gas - red and renewable geothermalpower plants, the company has created and maintainsthe greenest power plant feet in the world.

As Calpine fourished, more and more o its employeeswere located in Houston, eventually spurring the company to relocate its corporate headquarters. As Calpine grewto become one o the nations largest independent powerproducers, we needed a commercial organization to sup-port our plants needs or reliable, economical supplieso natural gas and to manage the unique nancial andrisk-management needs o our organization, said ThadMiller, Calpines Executive Vice President, Chie LegalO cer and Secretary.

Miller goes on to attr ibute the establishment o the com-mercial part o the company in Houston to the citys wealtho industry talent that was available to draw on, which islargely attributable to a core group o universities in theregion. He said that Houstons status as the worlds en-ergy capital attracts people who understand all segmentso the energy sector, rom the E&P experts who nd anddevelop the uel that Calpine uses, to the pipeliners whodeliver natural gas to supply its plants, to the accounting,

nancial and consulting industry experts who understandand support operations on both the power production,and the commercial sides o the business.

Then, as the power market in Texas was deregulated,Calpine began to acquire a number o plants in the stateas well. Ultimately, once these important componentswere in place, it made sense or the company to relocateits corporate headquarters to Houston.

A number o actors make Houston a great place to dobusiness, said Miller. The local economy is strong andresilient, and the absence o a state income tax in Tex-as o ers advantages or businesses and employees alike.Companies here draw rom a well-educated work orce,and reasonable housing costs make Houston an attractiveand practical place to live.

cAlpinecOrpOrAtiOn

Bean Spray Pump Company, which built agricultur-al equipment, went on to become Food Machinery Corporation a ter merging with the makers o ood-processing equipment and cannery machinery. Thecompany evolved urther as it began to make trac-tors and tanks or the military with the onset o

World War II.A ter the war, FMC pioneered continuous reezers,which allowed or assembly-line production o pre-packaged oods, made signi cant advancements inthe sterilization o canned oods, acquired chemicaland petroleum equipment and started going by thename FMC Corporation. For the next several de-cades, the company continued to grow and cultivateits business.

In 2000, FMC Corporation reorganized to becometwo separate publicly held companies, the rst a chem-icals business that kept the name FMC Corporationand the other the Houston-based FMC Technologies.Today FMC Technologies is one o the leading provid-ers o technology solutions or the energy sector andoccupies the #467 spot on the Fortune 500 .

Since its severance rom FMC Corporation, FMCTechnologies has created quite a list o accomplish-ments or itsel . It developed the worlds rst majorhigh-pressure/high-temperature vertical subsea treesystem in 2004, and achieved the worlds water depthrecord o 7,570 eet with the installation o subseatrees or Shells Coulomb project. The company broke the previous record once more in 2007 withthe deepwater completion o 8,995 eet in the Gul

o Mexico or the Independence Hub project. Last year FMC was awarded a contract rom Anadarko Pe-troleum or the oil and gas industrys rst 20,000 psisubsea wellhead system.

types Of cOMpAnies in tHereg iOn Wi tH fOre ign t rADe t ies

e gy 5%

O h 10%f a &i u a 5%

p o o as v 17%

Ma u a u g 24%

t a o a o 10%Who a r a

t ad 12%

t ommu a o 5%

e g g &co u o 7%

b ok &t ad 5%


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ALTHOUGH THE FINAL two com-panies discussed here do not appearon the Fortune list (yet), these inter-esting and promising companies areworth mentioning. Born in 1985 asan engineering company to servethe pharmaceutical and chemical

industries, Dynamic Engineering isanother o the many success ul com-panies that call Houston home to itscorporate headquarters. Other cit-ies such as Atlanta, Chicago, Newarkand Research Triangle Park in NorthCarolina were considered as possibleheadquarters or DEI, but Houstonstood above the rest because o itsengineering talent, its internationalairport and the number o large engi-neering, procurement and construc-tion companies with major o ceslocated in the area.

Its the top chemical engineeringmetropolis in the world, said DEIPresident Kevin Drumm. He also saidthat while engineering talent wasat a cost peak at the time when DEImoved into Houston, the cost was aroutweighed by the fexibility and ac-cessibility o the contract work orce.

The downturn in [the] globaleconomy in 2009 resulted in a busi-

ness slowdown, said Drumm. Hav-ing a fexible work orce enabled usto manage personnel costs.

Making connections with otherindustry-sharing companies in theHouston area has also aided DEIscontinued growth and success. Mar-keting and engineering alliances,along with engineering subcontrac-tor and research relationships, have

ostered the execution o large proj-ects while allowing DEI to managegrowth and internal sta ng.

DEI, which provides engineeringservices in polysilicon production

and clean room technologies, has atotal o more than 10 million hourso engineering experience. Since itsbeginnings, DEI has added to its rep-ertoire to include process researchand development required to gener-ate enhanced technology or dedi-cated trichlorosilane production andoptimal high-yield plant design orelectronic and solar-grade polysili-con. Today, DEI is considered to bea principal supplier o trichlorosilane(TCS) process technology or exist-ing and new entrants into polysilicon

or the photovoltaic (PV) industry.

WOrk fOrce: eMplOyMent prOJectiOnsHo o o a o a d wo o o o g ow a a a d a , h g a ad o a o a

EMPLOYMENT PROJECTIONS BY AREA OF OCCUPATION

Occupation Sectors Employment Change Percent2009 2016 Change

Ma ag m , b & f a a O a o 407,361 486,322 78,961 19%

p o o a a d r a d O a o 648,543 785,269 136,726 21%s v O a o 577,495 718,828 141,333 24%sa a d r a d O a o 425,052 500,390 75,338 18%O a d Adm a v s o O a o 481,454 551,240 69,787 14%p od o O a o 207,641 230,125 22,484 11%A o h O a o 598,627 695,029 96,401 16%

Total All Occupations 3,346,173 3,967,203 621,030 19%

no : Da a o h Ho o -s ga la d-ba ow M o o a s a a A a. to a m o m d wag a d a aa m a d o - a m o o . p o o d ho who a d a a d vo h m o h o oo o a d o d g.Source: Workforce Solutions, EMSI Complete Employment - 3rd Quarter 2009 and Texas Workforce Commission

DynAMicengineering


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BRINGING A UNIQUE twist to the

Houston business sector is FaroukSystems. The company, which isowned and operated by ormer hair-dressers, employs more than 2,500people. Farouk Systems manu ac-tures high-quality pro essional haircare and spa products, including theCHI and BioSilk lines. The compa-ny uses NASA technology, so beinglocated in Houston makes per ect sense. In act, the Senior Vice Presi-dent o Technology is a ormer NASA Senior Scientist and was with NASA

or more than 30 years.Proximity to NASA isnt the only

reason Farouk Systems keeps itsheadquarters in Houston. Like many others, the company appreciates theinternational airport, the Port o Houston, and o course, the people.Founder and Chairman o the BoardFarouk Shami began his business inHouston more than 20 years ago

The people, Houstonians, are thebest people you can have working or

you, said Farouk Systems Directoro Public Relations Jessica Gutierrez.Farouk started his business here,and when it exploded, he remained

aith ul to Houston and kept ex-panding here, said Gutierrez. He

elt that God had blessed him inHouston; there ore it was important

or him to expand here.And expand in Houston he did.

During times o economic trouble,Farouk Systems has opened a brand-new acility, bringing more jobs tothe Houston area.

With the outstanding work orce,networking and collaborative pos-sibilities, and avorable businessclimate, Houston stands as a primespot or success ul companies andtheir corporate headquarters. As lo-cal industries continue to fourishand evolve, the 10-county region willcontinue to welcome even more cor-porate neighbors.

fArOuk systeMs

M

M


24/44


business incentives lobe :Motivating factor for electing theright com any home ba e

expansion opportunities lobe :En uring a com any vi ion i carried out

from headquarter to beyond

work force cortex :putting ca ital in motion with aquality and abundant talent ool

cost of doing business lobe :Making ure youre in the mo t affordable

lace to do bu ine

quality of life cortex :sati fying your work force

er onal and rofe ional life

Houston Regi on

www.Houston.org

www.Houston.org

H o us t o n R eg i o n


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In an era of globalization, 24-hournews cycles, increased connectivityand closer customer access,corporations encounter the need fora faster, more complex way of doingbusiness. As traditional barriersbreak down, companies are ndinga world of new opportunities andnew ways to operate in increasinglyglobal markets, always seekingto surpass their competition. Asuperior location for a corporationsheadquarters can offer a distinctadvantage, and some corporations

nd it in their best interest torelocate. A relocation can bene tnot only the corporation but itsinternal and external stakeholders,as well as the city selected as itsrelocation destination.

Robert Ady, President,Ady InternationalCompany, on the science

of ideal corporateheadquarters locations

Anatomy B Y K A T I E M C C A R T H Yo f L o c a t i n g aCo rp o r a t e Headquar t er s

infrastructure lobe :the facili ies and ne work sys emwhich allow your company o func-

ion in he near and long- erm

w w w .H o u s t o n .o r g

Houston Region


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24 | OPPORTUNITY HOUSTON

or cities, attracting corporate head-quarters remains an elusive art. Fewmajor corporations relocate eachyear, perhaps no more than four or ve. Corporate headquarters reloca-

tion conversations take place behind the scenes, sinceeven a rumor of a company moving from one state toanother can cause an uproar as politicians and citi zensmount a ght to keep the corporat ion at its current lo-cation, and any negative publicity that emerges can af-fect the companys bottom line.

The bene ts and chal lenges of a signi cant corporate headquar-ters relocation are many. Reloca-tion cities must meet the needs of relocating corporations to ensuresmooth transitions. How does acity go about attracting corporateheadquarters? Well, for one thing,

it consults an expert. Robert M.Ady, President of corporate site se-lector Ady International Company,has identi ed optimal locationsfor more businesses in the UnitedStates than any other individual.He offers his views on the chal-lenges and rewards of corporateheadquarters relocations.

W H AT D R I V E S

C O M PA N I E S TO R E L O C AT E ?

Its rare when only a single de cien-cy leads to a relocation or a speci cevent triggers a move. Most often it is a number of issues and incremen-tal changes that t rip the nal relo-cation decision.

Companies facing a move consid-er their external and internal driv-ers. External drivers relate to theexisting geographical placement of the facility, including the labormarket, infrastructure, air-service

COMPANY RANK

ConocoPhillips 6

Marathon Oil 41Sysco 55Enterprise GP Holdings 92Plains All American Pipeline 128Halliburton 158National Oilwell Varco 182Continental Airlines 183KBR 193Waste Management 196Baker Hughes 243Andarko Petroleum 260Apache 271CenterPoint Energy 275Smith International 277Kinder Morgan 315Calpine 338Enbridge Energy Partners 364Cameron International 399EOG Resources 434Spectra Energy 437El Paso 447Group 1 Automotive 457FMC Technologies 467Frontier Oil 488

TWENTY-FIVE COMPANIESON THE 2010 FORTUNE 500LIST ARE HEADQUARTERED INTHE GREATER HOUSTON AREA.

availability, expansion oppor-tunities and business climate.Internal drivers relate to thein-house operations of the com-pany, including organizationalstructure, culture, leadership,image and the companys visionof its future.

W H AT A R E T H E

TRENDS IN CORPORATE

HEADQUARTERS RELOCATION?

Corporate relocations defy trends. Companies are movingall across the country in variousdirections. For every relocationto a major city from a suburb or arural community, there is proba-bly a relocation from a major city to a smaller town or suburb.

Companies make relocationdecisions on a subjective level.Relocation criteria are uniquefor each company. Companiesseeking a campus-style facil-ity with a more relaxed lifestylewill choose a suburban location.Companies seeking various aux-iliary services, such as legal, ac-counting and specialized equip-ment rms nearby, will choose adowntown location.

HIGH TECH HEADQUFive companies on the 2009 Deloitte 500 list are headquartered in Houston

Rank Company 2007 Revenues ($000,000)

113 ERF Wireless, Inc. 5,155126 RigNet, Inc. 89,411

141 Additech, Inc. 12,956

272 ObjectWin Technology, Inc. 48,284

279 PreCash 84,621

Source: Deloitte Development LLC, 2009

Rankings are based on business being in business at least five years, hresponsible for a majority of the growth, and growth in revenues. Firmsleast $5 mil lion U.S. or Canadian Dollars, and are ranked on ve-year reve


27/44

OPPORTUNITY HOUSTON | 25

HOW DO STATE AND CITYINCENTIVES AFFECT CORPORATEHEADQUARTERS RELOCATION?Incentives play a role in relocation, but not as large arole as many people believe. If a location is not right fora corporation, no level of incentives will make it right.

HOW DO YOU DETERMINE GOOD

CANDIDATE CITIES FOR COMPANIESLOOKING TO RELOCATE OR EXPAND?Different companies have different requirements. In siteselection, we evaluate the company. Each company hasits own set of needs and priorities. We star t by spending aconsiderable amount of t ime with the company, learningabout its culture, its goals , its objectives and its long-termstrategy. We take these criteria and we evaluate them.We then convert them into speci c factors that wouldrelate to speci c locations.

WHAT DO THE FUTUREHEADQUARTERS REGIONS LOOK LIKE?

THAT IS , WHAT SORTS OF AMENITIES/LABOR FORCE/LIFESTYLE/FINANCIAL BENEFITS/INFRASTRUCTURE,ETC. , WILL ENTICE COMPANIES?Companies are looking for locations that t their long-term objectives. Successful headquarters locations of-fer a variety of attractive community features, such asa strong labor market, a ffordable commercial and resi-dential real estate, future expansion options, coopera-tive cit y leaders and a great t for the companys corpo-rate culture.

WHAT ADVANTAGES DOES A REGIONLIKE HOUSTON HAVE FOR ATTRACTINGCORPORATE HEADQUARTERS?The Houston region is a major player for cor-porate headquarters relocations. First, it isalready a very sophisticated corporate head-

quarters location. Companies relocating willbecome part of the culture and the environ-ment of the Houston area.

Houston has developed an inf rastructureto accommodate major corporate head-quarters, including an international air-port, a pro-business attitude, and a senseof local leadership working with compa-nies considering the area. Houston offersa number of site possibilities, first-classdowntown office space, and considerablesuburban office space.

The Houston region also is an integral part of the overall pro-business climate of thestate of Texas. Many companies evaluate not only the city itself but also the state.

HOW DOES HOUSTON LEND ITSIMAGE AND BRANDIN G POTENTIALTO CORPORATE HEADQUARTERS?Houstons image is very positive. With its strong base of existing corporate headquarters, it shows relocating com-panies that it has the right community to support addi-tional headquarters. Companies nd it dif cult to moveto a location that does not already have other corporate

headquarters in place.Houston also has a strong existing corporate network.Its pro-business atmosphere makes the city more desir-able as a headquarters destination. Houston is seen as agreat place to run a business. The Houston image is onethat is very popular with corporations.

WHAT IS THE FUTURE OFCORPORATE HEADQUARTERS RELOCATION?Corporate headquarters relocations wil l continue in thefuture. Companies will continue to seek out new loca-tions once their existing locations no longer meet theiroperational requirements.

Along with locations and operations, corporate head-quarters relocations will be driven by other factors, in-cluding changes in corporate leadership, changes in lo-cal regulation, new taxes and rising costs.

Whatever the reason, a relocating company will alwaysbe a great thing for cities. Relocating headquarters offertheir chosen cities a huge infusion of outside talent, ad-ditional participation in civic activities and community projects, a signi cant increase in air travel, an increasein housing demand and, nally, new residents looking tomake the new city their home.

Robert Ady

ERSear Growth % Industry

6 Communications0 Communications

7 Communications

Software

Software

America, having proprietary technologyt-year operating revenues totaling at

h with a base year of a t least $50,000.


28/44


Kev n F zpa r ck, tr ck Rop ng

texas Governor R ck Perry n a Salu e o texastexas Week, US Pav l on, S ang a World Expo

S ak ng ands af er s gn ng MOU, Mr. Massey V llarreal, BoardMember, Grea er hous on Par ners p and Mr. L u J np ng, Depu yD rec or General, S ang a Fore gn inves men Developmen Board,S ang a Overseas inves men Developmen Board (SFiD)


29/44


The Expo shines alight on regionaleconomicdevelopment opportunities whileproviding a cultural

exchange betweenChina and theHouston region

HoustonRegion and

Texas on Showat ShanghaiWorld Expo 2010 B y M a t t S M i t h


30/44


N MANY WAYS, the China writtenabout in history books is history.Once an isolated country bound by its strict adherence to tradition, Chi-

na today is an in uential economicpowerhouse with ties that span theglobe. The world rst got a glimpseof the new China at the 2008 SummerOlympics in Beijing. If the Olympicswere a coming-out party for the newChina, the Shanghai World Expo 2010is an extravagant display of the countryseconomic dominance and emerging roleas a leading nation.

More than 190 countries and 50 international organi-zations gathered in Shanghai for the Expo, which kickedoff in May and will wrap up on October 31. With thegoal of promoting the global exchange of ideas and thedevelopment of greater international relationships, theWorld Expo allows countries and exhibitors to meet anddisplay their achievements in commerce, science, cultureand technology, said Aaron Demerson, Executive Direc-tor of Economic Development and Tourism at the Of ceof the Governor.

Texas is one of only three states to serve as sponsors forthe expos USA PavilionHawaii and Tennessee are theothers. With the theme Rising to the Challenge, the pa-vilion presents the United States as a place of opportunity

and diversity where people come together to change theircommunities for the better. It also showcases the many economic development opportunities and tourist attrac-tions Texas has to offer.

The USA Pavilion featured a Salute to Texas Weekfrom June 12 to 19. Governor Rick Perry and First Lady Anita Perry led a delegation of state, business and tour-ism leaders representing Texas at the special event. WithChinas status as one of Texass largest trading partners,and with numerous Chinese and Texas businesses and in-dividuals working and visiting the two destinations, thetime for an of cial visit could not be more opportune,said Demerson.

The Greater Houston Partnership, the primary advo-cate of the Houston business community, joined the Texasdelegation in June and returned in August with the City of Houston. GHP is also a co-sponsor of the USA Pavilion.In June, GHP led a delegation of Houston business lead-ers in meetings with governmental of cials and corporatedecision makers in Wuxi City and Beijing.

Our region is a leader in international business, a magnet for capital investment and expansion, and like Shanghai, hasan ideal geographic location, said GHP Executive Vice Pres-ident and COO Tracye McDaniel, head of the delegation.

Total trade between Houston and China has grown by more than $8.4 billion since 2000, reaching $10 billionin 2009 and representing a compound annual growthrate of 23.2 percent over that period. China is Houstons

houston M or annise P rker presenting Guo Jinlong, M orof Beijing b sketb ll signed b houston Rockets y o Ming


31/44


second-largest air cargo trade partner, and imports fromChina increased 34.4 percent, from $7.4 billion in 2007to $9.9 billion in 2008. Houston is Chinas eighth-largest seaborne trade partner in the United States by value andthe fth-largest by weight. Houston ranks as Chinas 10th-largest trade partner.

During the Expo visit, GHP also presented an Invest in Texas seminar that focused on investment oppor-tunities in the Houston region. The seminar targetedChinese investors and included discussion on a range of topics like current business incentives, tax regime, legalclimate, nancing, labor, transportat ion, economic de-velopment and municipal support. GHP also led an In-vest in Houston workshop with a similar focus duringthe trade mission.

The purpose of our participation in the Expo and thesubsequent mission is to stimulate more trade and invest-ment between the Houston region and China, particularly in major centers of commerce like Shanghai, Wuxi City andBeijing. The Expo gives Houston the perfect opportunity to expand our global footprint and to strengthen our posi-tion as a leader in international business, said McDaniel.

the wo economic powerhouseshope o expand upon he business

rela ionships heyve already forged.

the Co la e Ge e al of hepeo le re bl c of Ch a o eof Ho o 92 co la comembe . Of he 11 Ch e e-ow ed

b d a e Ho o , a leao e headq a e ed sha gha :Bao eel Ame ca, a me alfab ca o com a y w h e ma eda al ale of $1.7 m ll o a d 20local em loyee .

the po of sha gha he wo ldeco d-la ge ea o , o al g 508m ll o me c o (551.5 m ll o ho

o ) 2008. the po of Ho o he wo ld 15 h-la ge ea o ,

o al g 192.5 m ll o me c o(212.2 m ll o ho o ) 2008.i wa a o ced Ma ch 2010

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B Y N AT H A N I E L J A N E S

The commercial realestate scene in the region

Source: Houston Region G.I.S. For more information, visit http://www.houston.org/economic-development/houston-gis/index.html

30 OPPORTUNITY HOUSTON


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31OPPORTUNITY HOUSTON

HOUSTON TODAY IS A LAND OF OPPORTUNITY

for companies looking to establish or relocate theirheadquarters to a vibrant, global area. From its re-nowned labor pool to its robust commercial real estate

market, Houston is poised for contin-ued growth and success in the seconddecade of the millennium.

Among the many world-class featuresthat attract companies to establish theirheadquarters here, the citys work forcemay be the most compelling. Dan Bellow,President, Jones Lang LaSalleHouston,said Houston has a very diverse, a very international labor pool, and thats what a lot of large multinational global orga-nizations want. He continued, In Hous-ton were known for our work ethic, andpeople nd the caliber and the quality of the work force here is just tremendous.

A companys greatest asset is its workforce. The accommodation of that talent,the amenities and the general quality of life that Houston has to offer gure sig-ni cantly in the decision-making processof a company choosing to move its head-quarters here. Once that choice has beenmade, a company will typically employ alarge brokerage rm or a site consultant to provide assistance in nding the best

space to suit its needs.Downtown Houston is the businesscenter, the banking center, the legal andaccounting center, and, of course, theenergy center, with the presence of thelarge energy companies located there.A given company with a work force that involves one or more of these businesssectors may consider the great publictransportation systems that will bring itspeople to and from work, the food ser-vices and the other abundant amenities,and may well choose a central businessdistrict location.

But not everybody has to be downthere, said Bellow. Some companies de-cide to put their headquarters, or at least their key operations, in Houston, but they will weigh that against a suburban cam-pus environment where that work forcemay be performing a different function,a work force that may not need to inter-act with the banks, the accountants, thelawyers and the courthouses.

No two companies make these decisions the same way.Several Fortune 500 companies selected downtown Hous-ton as their headquarters because of the central locationand the attending amenities, while others selected a moresuburban campus feel, closer to the airport perhaps,closer to the labor force. Whichever approach a compa-ny takes, it is choosing a region where its employees canenjoy a rst-rate quality of life and where the company can operate in what is arguably the most business-friendly metropolitan area in America.

One thing you hear constantly is that once you arrivein Houston, youre welcome the day you set foot here,noted Bellow. The same can be said of the city itself withregard to welcoming companies to the region. The realestate market in Houston has remained an affordable,strong investment choice in both the residential and thecommercial sectors. In fact, according to the Houston Chronicle, the Houston Business Journal and the HoustonAssociation of Realtors, the average cost of a home in theHouston area has gone up year after year, even during2009. It is widely agreed that Houstons minimal land useand zoning restrictions have contributed greatly to spar-ing the city from the brunt of the real estate crisis. Hous-ton does not have the municipal boundaries on land useand zoning that may exist in other markets, which in turn

keeps the competitive environment robust and keeps realestate affordable.In most major markets, companies encounter topograph-

ical boundaries that limit growth. In contrast, 30 percent to40 percent of Harris County is still land to be developed, asituation that makes for tremendous build-to-suit opportu-nities in the area, another option that companies may con-sider in addition to the established downtown versus subur-ban campus real estate options. Typically a company wouldconsider a build-to-suit situation (new properties that arebuilt according to the speci cations of that company)when it would be a long-term tenant in the building. More-specialized properties such as those that perform industrialfunctions are also a strong prospect for companies lookinginto the build-to-suit option.

Houston is third in terms of Fortune 500 companieschoosing to establish their headquarters here, and we may take note of Joel Kotkins observation in his recent Forbes magazine editorial Houston: Model City: Between2000 and 2009 Houstons employment grew by 260,000.Greater New York Citywith nearly three times the popu-lation of Houstonhas added only 96,000 jobs. With allits merits, Houston is truly a headquarters for corporateheadquarters in the global business environment.

Dan Bellows

PHOTO: GIS


34/44


Top Cities for

New College GradsSource: BloomBerg BusinessweekJuly 16, 2010

Best Cities forYoung Professionals

Source:ForBes.comJune 17, 2010

Largest PopulationGainHarrisCounty Source: u.s census Bureaumarch 23, 2010

Best Cities forJob Growth

ource: new geography and ForBes: largeties ranking 2010 Best cities For JoBs

pril 20, 2010

B ff B p

t x s u v

c v m


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Results from the 2010Houston Area Survey

B y k e n s c h n e i d e r

Change Is

Here, withMore toComeTop

DestinationCity Source: u-haul

internationalapril 2, 2010

t h r


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According to Dr. Klineberg,the research clearly shows that Houston has come ar romthe days o being an Anglo-dominated city riding the oilboom.

Through almost three decades o system-atic research, the annualHouston Area Survey hasmeasured this regions re-markable economic and de-mographic trans ormationsand recorded the way Hous-

tonians are responding to them. No other metropolitanarea in America has been the ocus o a research pro-gram o this scope. And none more clearly exemplifesthe trends that are rapidly re ashioning the social andpolitical landscape o urban America.

Partly in recognition o the increasing value and impor-tance o this research, Rice University o fcially launchedthe Institute o Urban Research (IUR) in February 2010,

with Dr. Klineberg as codirector. According to the IUR,the new institute will provide a permanent home or theannual surveys, stimulate other metropolitan research,sponsor educational programs, and engage in public out-reach that advances understanding o pressing urban is-sues and osters the development o more humane andsustainable cities.

Discussing the signifcance o the survey results, Dr.Klineberg put historic events in context. He ocused onthe two great revolutions o our time, more clearly seenin Houston than anywhere else in the country, happen-ing everywhere. One is the decline o the natural resourceeconomy that was the basis or wealth or both Houstonand Texas. You didnt need education to make money.You needed commoditiesland, cotton, timber, oil, hu-man resources. But now education is key. The new restruc-tured economy has been growing inequalitiesaccess toquality higher education among them.

There exists a new understanding that i Houston isgoing to make it in the 21st century, it has to attract thetalent ound between the ears o the best and the bright-est people in America, who can l ive anywhere.

Houston continues to represent the American uturein terms o the ethnic trans ormation according to Dr.Klineberg. It is now a city in which 70 percent o residentsover 60 are Anglo and more than 75 percent under theage o 30 are not. All the growth in Houston during theoil boom was Anglos. Now Anglo population has declined.Literally all the growth in the last quarter century has been

non-Anglo growth. So this biracial Southern city dominat-ed by white men has become one o the most ethnically multicultural cities in America.

Those two trans ormations are happening acrossAmerica, nowhere more clearly articulated, more ocused,more sel -evident than in Houston in the 21st century.This is the set o cards this generation has been dealt. The

N APRIL 21, Dr. Stephen Klineberg, professor of sociology at Rice University, presented the latest results of the 2010Houston Area Survey to a Greater Houston Partnership lun-cheon crowd of several hundred. Titled Perspectives on a

City in Transition, the survey revealed many eye-opening facts about the region and the multitude of important changes taking place in it.

d . sk b

houston has to attract thetalent Found Betweenthe ears oF the Best and theBrightest people in america .

what a

great cityin whichto Be a

sociologist.

despite their economicworries, residents

remain upBeat aBout thehouston region.


37/44

question moving orward is how do we seize the opportu-nities and derail the dangers?

Key fndings in this years survey include the ollowing:H rris Coun y residen s h ve become consider bly morepessimis ic bou heir person l fin nci l si u ions, even s

en ive signs of economic recovery, become eviden .

The numbers who said their personal situation had beengetting worse in the past ew years grew rom 21 percent in 2008 to 27 percent in 2009 and to 32 percent in 2010.

The proportion saying things were getting better orthem declined rom 40 percent in 2008 to 32 percent in2009 to just 20 percent in this survey. That percentage to-day is lower than ever recorded in all 29 years o surveys.Hous on- re residen s od y perceive much more prob-lem ic economy, where jobs re less secure nd educ ionmore impor n h n ever before.Over the years, respondents have been asked about thisstatement: People who work hard and live by the rules arenot getting a air break these days. In the 2010 survey, 67percent agreed with that assessment, up rom 57 percent in 2002, 61 percent in 2004 and 59 percent in 2008.the economic nxie ies re reflec ed in declining supporfor governmen ini i ives.Those in avor o ederal health insurance to cover the med-ical costs o all Americans declined rom 74 percent in 2006to 67 percent in 2008 and to 52 percent in February 2010.

Agreement with the statement that the government should take action to reduce income di erences betweenrich and poor in America declined rom 50 percent in1992 to 44 percent in 1999 and to 39 percent today.Despi e heir economic worries, residen s rem in upbe

bou he Hous on region.Residents have been asked periodically how they wouldrate the Houston area in general as a place to live. Thepercentage saying excellent or good has grown con-sistently over the years, rom the already high fgures o 63 percent in l983 and 75 percent in 2008 to 82 percent in 2010.

H rris Coun y residen s now cle rly suppor more urb nlifes yle.During the next 20 years, the respondents were told, Har-ris County will need to build new housing, shops and work-places or more than a million additional residents. Whenasked about the best way to accommodate that growth, 80percent called or redeveloping older urban areas to buildthe new housing and shops where services, streets and sewerlines already exist. Only 15 percent pre erred to continueto build new suburbs on the edge o existing suburbs.

In the 2010 survey, 73 percent agreed with the assertion that we need better land-use planning to guide development inthe Houston area; 21 percent believed instead that people or

businesses should be ree to build wherever they want.More gener lly, he d sugges s n incre sing ccep-nce of he burgeoning diversi y.

According to the U.S. Census, the population o HarrisCounty in l980 was 63 percent Anglo. Today, non-Hispanicwhites compose less than 35 percent o the countys popu-lation. One indication o that remarkable change can beseen in the rise o multiracial churches. When the respon-dents were asked in 2000 i more than 80 percent o thepeople in the religious services they attend were o theirparticular ethnic background, 73 percent said yes. In 2010,

that fgure had dropped to 65 percent, indicating asignifcant increase in the number o multiethnic

congregations.How will the Houston region deal with these

changes and others? Indeed, how will the nation?The answers may lie in care ul study o the trendsrevealed. And at the Institute or Urban Research at Rice University, Dr. Stephen Klineberg will enthu-siastically share his remarkable insights, even as he

prepares or next years survey. What a great city tobe a sociologist in! he confded.Complete survey results are available onlineat iur.rice.edu.


surVey says . . .here is a sampling of results from t e survey:

82% of residen s r ed he Hous on re excellen or good s pl ce o live.69% believe he incre sing e hnic diversi y of Hous-

on is source of gre s reng h for he ci y.30% of survey responden s hink h living condi-

ions in he Hous on re h ve been ge ing be erover he p s four ye rs. 38% re of he opinion h Hous on- re livingcondi ions will con inue o improve over he nex

hree o four ye rs.a new high- ech knowledge-b sed, fully worldwidem rke pl ce h s repl ced Hous ons resourceeconomy of he indus ri l er .


38/44

Culture The Woodlands

Sub d t xt TK

Location, Location, Luxury By DeBorah Mann LaKe

tHe WOODlANDS

HE BUILT IT and they came. Care-fully nestled into woods that oncerang with the saws of the GroganCochran Lumber Company is TheWoodlands, a master-planned com-munity 28 miles north of Houstonthat was carved out of the visionof oil tycoon and philanthropist George P. Mitchell.

Its original 2,800 acres, purchaseddirectly from the historic lumbermill in 1964, have been expanded to28,000 acres, with seven golf courses,185 miles of hike-and-bike trails, 116parks, a large lake, a scenic waterway and two major shopping centers.

So its no wonder that 92,000 peo-ple and major businesses includingUS Oncology, Anadarko PetroleumCorporation, Lexicon Pharmaceuti-cals and Chevron Phillips ChemicalCompany call it home. And no sur-

prise that it was ranked #14on Forbes s America: 25 Best Places to Move list in 2009.

Its a great community for our employees and agrowing center of com-merce, said DavidBronsweig, ExecutiveVice President of Hu-man Resources forUS Oncology, oneof the largest net-works of commu-nity oncologistsand cancer re-searchers, whichmoved into its newheadquarters therein March 2009. Weare close to amenitiesin a scenic environment,and people can get out at lunchtime and stretch

36 | oPPortunity houston

ab v : T W t w . B l w: G g d C t i Mitc ll


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oPPortunity houston | 37

their legs along the walking trailsand the waterway. Its very sa e here,said Bronsweig.

The 1.4-mile Woodlands Water-way, complete with river taxis, ispart o the Town Center, where

Market Streetwith its almost old-timey, small-town ambienceo ersthe latest in retail shopping thera-py. For children, theres Waterway Squares interactive ountain with abeauti ul tile installation by Hous-ton artist Dixie Friend Gay titledThe Treasures from Grandmas Purse.

In 1998, when Anadarko beganto outgrow its o fces in the Greens-point area, it turned to The Wood-lands because o its community spirit and its proximity to the George H.W. Bush Intercontinental Airport. Al-though the waterway was just lines onan architectural drawing at the time,the company saw the potential.

None o that [the waterway] washere yet, but when we saw the draw-ings, we thought it would be a great recruiting tool down the road, andits turned out to be really, really nice, said Julie Strubel, Vice Presi-dent o Human Resources or Ana-darko, one o the worlds largest in-

dependent energy exploration andproduction companies.Also in the Town Center is The

Woodlands Mall, home to major andboutique retailers as well as a popularcarousel. The Cynthia Woods Mitch-ell Pavilion, an entertainment venuethat draws people rom throughout the Greater Houston area, is acrossthe street. The Pavilion Park entranceincludes a sculpture by Jay Hester, atribute to the late Cynthia Mitchellthat shows her reading to children.

People go out on the waterway right a ter work to enjoy camaraderie, Bron-sweig said. We use a lot o the ameni-ties. We hold our large employee meet-ings at the theater [in Town Center]and have popcorn and sodas.

The Town Center also includes urbanresidences such as the Waterway Lo tsand the Remington Brownstones.

Grace ully set apart rom everythingelse are the nine residential villages,

each with its own neighborhoods,schools, shopping areas and parks.

When the newest village, Creek-side Park, opened in 2007, 1,700acres were set aside or a nature pre-serve and named in honor o GeorgeMitchell. As part o the plannedSpring Creek Greenway Project, thepreserve garnered a Corporate Con-servation Leadership Award romthe Nature Conservancy o Texas

or The Woodlands Development Company. The Woodlands itsel hasreceived the Award o Excellence

rom the Urban Land Institute andthe international Nations in BloomGold Award.

Stunning public art is sprinkledthroughout The Woodlands, romthe towering Spirit Columns by re-

nowned sculptor Jesus Bautista Mo-roles at Six Pines and Lake Robbinsdrives to the running deer o theMonarchs series by Dick Idol at theentrance to Anadarko.

Anadarkos 30-story building wasawarded the LEED Green Build-ing Certifcation by the U.S. GreenBuilding Council in 2009. It also re-ceived the 2008 and 2009 U.S. Envi-ronmental Protection Agency (EPA)Energy Star Award or its energy-consumption savings.

Were very proud o the LEEDcertifcation, Strubel said. Receiv-ing that certifcation was close tothe hearts o the people here whoworked really hard on it. And ftting

or a company that now sits amid thepiney woods o The Woodlands.Ph

otos: GhP

The Woodlands entrance

The Cynthia Woods Mitchell Pavilion


40/44

38 | oPPortunity houston

UniqueVisionse j h st s

t pp i gsBy Troy SChuLze

Art SCeNe

DANCe WitH CAmerA

Live dance performances can beelectrifying, spectacular experi-ences. But have you ever watchedone-camera still footage of aBroadway show, a ballet or contem-porary dance? It can be excruci-atingly boring. Bringing dancealive on film requires a skillful eyethat knows when to cut to close-up or move the camera to achievethat perfect kinetic energy. TheContemporary Arts MuseumHouston is exploring the art of dance photography with Dancewith Camera, an exhibition of film, v ideo and still photography that chronicles 70 years of captur-ing choreography. Selections spanBusby Berkeleys Hollywood musi-cals to contemporary avant-gardefilms. Opens August 7, Contempo-rary Arts Museum Houston, 5216Montrose. 713-284-8250. Free.

K ll nippinterval,2000

bbi sc ilds + a.L. St iC.L.U.E. Part I,2007


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OPPORTUNITY HOUSTON | 39

AS I TRAVEL the country speaking,I have the opportunity not only tospread my business word but also to act as an ambassador for the great city of Houston and the region. Every chanceI get, I sing the praises of my home-town. Many Fortune 500 companiesalready know what we knowHoustonis a great place to live, work and run acompany. So how do we go from #3 inFortune 500 HQs to #1? As usual, sev-eral Houstonians have the answers.

Houston needs to aggressively mar-ket its locational attributes to thebusiness leadership. A careful com-parison should prompt forward-looking companies to evaluate theirexiting location. Its about whereshould our corporation be locatedin order to take advantage of the21st-century environment that is be -

ing played out daily?ROBERT M. ADY

President Ady International Company

Continuing to nurture the ideas of the entrepreneur seems key. Hous-ton is rich in educational, culturaland economic resources. It is oneof the few places that I have livedwhere I meet people every day whohave turned their ideas into thriv-ing businesses.

TIA NORMAN

Manager of Suites Sales Houston Rockets and Toyota Center

Houston supports a $416.6 billiongross area product. Houston is theleading domestic and internationalcenter for every segment of the en-ergy industry. Our world-acclaimed

Texas Medical Center keeps us at the forefront of medicine and sci-ence. We are an international busi-ness and along with many largebusinesses, the region also supportsmore than 76,000 businesses with100 or fewer employees. The Great-er Houston Partnerships EconomicDevelopment team has been namedamong the nations top 10 economicdevelopment groups by Site Selection magazine three times in the last 10

years. With all this, the Houstonregion remains remarkably afford-able. Companies just need to knowabout us!

TRACEY SHAPPRO

Executive Producer VISION Production Group

Regional transportation alterna-tives, transit and accessibility fromwork to home will be critical in at-tracting Fortune 500 HQ companiesin the future. Our area is diverseand growing economically, but weneed to make sure that the folkswho live here can easily get fromone place to another, as they alwayshave. Fortune 500 decision makerswill be looking closely at quality-of-life issues such as this.

PAT WASKOWIAK

Transportation Planning and Ou

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