2008 Annual Report.

Transcription

1 2008 Annual Report

2 Texas Economic Development Corporation Board of Directors President Nicholas Serafy, Jr. President & CEO Proficiency Testing Service, Inc. Vice President David Wallace CEO, Wallace Bajjali Development Partners, LP Secretary-Treasurer Scott Johnson Partner, Wheelhouse Ventures Paul Foster CEO, Western Refining Company, L.P. Kerry Hall President, Texas Capital Bank Jane Juett Owner, The Kitchen Gallery, Inc. Tracye McDaniel Executive Vice President & COO, Greater Houston Partnership Massey Villareal President & CEO, Precision Task Group Bob Wingo TEDC Past President President & CEO, Sanders\Wingo Table of Contents Letter from the President TexasOne Program Overview SM TexasOne Business Recruitment Activities SM Member and Industry Events Marketing the Texas Brand Texas in the News Fiscal Year 2009 Activities Outlook TexasOne Financials SM TexasOne Members SM Ex-Officio Board Members Esperanza Hope Andrade Texas Secretary of State Aaron Demerson Executive Director Office of the Governor Economic Development & Tourism Division

3 December 1, 2008 Dear Member: Since 2003, has proudly promoted Texas as the premier business location. Your membership contributions allow us to take a strategic and targeted marketing approach at the State level and the results speak for themselves. Texas was named America s Top State for Business by CNBC, adding to the growing list of accomplishments and accolades for Texas business climate. Texas was also awarded State of the Year by Business Facilities magazine and received the Gold Shovel award from Area Development magazine for economic development and jobs created in We continue to build strong relationships with global business leaders and site consultants through our business recruitment missions, signature events and other marketing activities. Our business recruitment missions have been successful and opened doors to many new business prospects. Following a business mission to Brazil, Santana Textiles announced the establishment of a denim manufacturing plant in the Rio Grande Valley, creating more than 800 jobs and $170 million in capital investment. Our fundraising efforts remain strong. We are thrilled to report that has raised over $5M, but there is much work left to be done. Membership has grown to encompass more than 150 corporations, associations and communities, representing a cross section of the business community from some of the largest Fortune 500 companies in the nation to rural communities of the state. None of these accomplishments and successes would have been possible without the support, input and vision of members. I thank each of you for your dedication. I am proud and honored to serve as the President of, and look forward to reaching even greater heights with you in Sincerely, Nick Serafy, Jr. President 1

4 Program Business Recruitment Mission to New York City, September The only source of economic development marketing funds for the State of Texas is through the Program. has directly enabled strategic economic development outreach at the state level through its fundraising efforts and member participation. The unique marketing approach made possible by has boosted the state s economic development initiatives and created a surge of national and international awareness of Texas as a business-friendly state. This successful public-private partnership is a direct result of the contributions, input and vision of members. History The Texas Economic Development Corporation (TEDC) was established in 1987 by the 70th Texas Legislature. The TEDC was incorporated as a non-profit and granted federal 501 (c) (3) status in On Sept. 1, 2003, Texas Department of Economic Development was merged into the Governor s Office, along with the TEDC, and was renamed the Office of the Governor, Economic Development & Tourism Division (EDT).

5 On September 23, 2003, Gov. Rick Perry launched the program as a part of TEDC managed by a statewide board of directors appointed by Gov. Perry. In 2004, Gov. Perry established the Governor s Economic Development Partnership Council, comprised of the board of directors and Tier One members of, with the mission to promote business to Texas. Mission The mission of is to create a public/private partnership that markets Texas in a dynamic and competitive manner. is funded through private contributions by organizations and individuals interested in the business climate of the state and in making a positive contribution toward the promotion of economic development and job creation in Texas. Goals The goal of the campaign is to market and promote Texas as a premier business location. Funds raised are used to support special events, outreach programs and other exciting and highly visible marketing and communications programs. These programs are directed at a targeted audience of key corporate decision makers and site selectors. Marketing activities include: Trade and industry events, business and recruitment missions, signature events, advertising and public relations and an interactive web presence. Achievements was directly associated with the announcement of more than 27,000 new jobs and $10 billion in capital investment to the state since activities have also established new international and domestic markets creating additional leads for relocation to Texas. Gov. Perry speaking to members Over the past four years, has become one of the most successful and impactful state economic development marketing efforts in the country. accomplishes more with fewer resources than any other state and the results speak for themselves. Bob Wingo Past President, 3

6 Business Recruitment Activities Business Recruitment Mission, New York City, May 2008 Since its inception, has enjoyed tremendous success assisting job growth in Texas Business Recruitment Activities included: Domestic and international missions One-on-one meetings with more than 20 site selectors More than 40 community and corporate participants Business Recruitment and Trade Missions In FY 2008, continued to support the state s economic development outreach marketed under the Texas Wide Open for Business banner. The Office of the Governor, Economic Development and Tourism Division has overseen the successful completion of business recruitment and international trade and investment missions to: Argentina & Brazil Canada Mexico Spain Los Angeles, CA New York, NY 4

7 2008 The NASDAQ OMX Group, Inc. Reprinted with permission. Domestic Missions April/May 2008 Business Recruitment Missions to Los Angeles, CA and New York, NY members and communities participated in business recruitment missions to Los Angeles in April and to New York in May. The team met with representatives from consulting firms to promote location and expansion opportunities in Texas. International Trade & Investment Missions November 2007 Trade and Investment Mission to Canada The team hosted business development seminars in Toronto and Montreal. In addition, extensive Toronto area media coverage was generated. Argentina and Brazil Mission, March 2008 Gov. Perry speaking at the World Investment Conference, La Baule, France, June 2008 March 2008 Trade & Investment Mission to Argentina and Brazil As a result of this mission, Santana Textiles announced they would open a facility in the Rio Grande Valley bringing 800 jobs and $170 million in capital investment to the area. June 2008 World Investment Conference, La Baule, France Gov. Perry touted Texas strong economic footing to world investment leaders and invited them to expand their businesses in Texas at the World Investment Conference (WIC). The governor s keynote address provided a platform from which to increase Texas international trade relations. July 2008 Farnborough International Air Show, London, UK Representatives from the Office of the Governor were in attendance and met with some of the largest aerospace companies in the world. July 2008 Trade and Investment Mission to Madrid, Spain Texas Comptroller Susan Combs joined the team in Madrid, Spain and attended several meetings with Spanish business leaders. The group also met with representatives from site consulting firms to promote location and expansion opportunities. As a result of our activities in Spain, Texas is now receiving active relocation/expansion prospects. Spain Mission, July

8 Business Recruitment Activities August 2008 Energy and Trade Mission to Mexico City, Mexico The annual mission to Mexico focused on the energy and technology sectors. The team held an Invest in Texas seminar which was attended by more than 100 Mexican industry and business leaders. Trade Shows March 2008 World s Best Technology Conference (WBT), Arlington, TX The State of Texas co-sponsored the 2008 WBT showcase in support of emerging technologies. The event matches emerging technologies with mentor companies that prepare them to make concise, investor-oriented presentations seeking investment capital or licensing partners. The conference brought together 75 world-class technologies and attracted more than 500 attendees including 140 investors and Fortune 500 licensees. April 2008 Society of Automotive Engineers (SAE) Conference, Detroit, MI The State of Texas and a group of communities hosted the Texas Pavilion at the SAE 2008 World Congress conference. The group spoke to many decision makers in the automotive industry about relocation and expansion opportunities in Texas. As a result of the show, one major automotive company is now considering expansion in Texas. June 2008 WINDPOWER 2008, Houston, TX The State of Texas with the support of Opportunity Houston, Trinity Industries, Inc. and participating Texas communities proudly sponsored the Texas Pavilion at Windpower 2008, where Gov. Perry presented the keynote address. At the conference, Texas Booth at SAE, April 2008 Vestas announced the opening of their new R & D facility in Houston. The Texas team also met with representatives from Martifer Energy Systems LLC, who later announced a facility opening in San Angelo that is anticipated to bring 225 new jobs and a projected $40 million in capital investment. Gov. Perry giving the keynote at WINDPOWER 2008 June 2008 BIO International Convention, San Diego, CA The State of Texas hosted a booth with Texas communities at BIO 2008 where on-site meetings were held with some of the largest companies from around the world. As a result of the show, relocation and expansion projects valued at over $ 1 billion are actively considering Texas. 6

9 Signature Events November 2007 Dallas Cowboys Game, Dallas TX EDS co-hosted a Signature and Recruitment event at the Dallas Cowboys vs. the Green Bay Packers game at Texas Stadium. Guests included several business prospects as well as potential new members. April 2008 NCAA Final Four Championship Game, San Antonio, TX members hosted a group of site consultants on a familiarization tour of Austin & Houston. Consultants also attended the NCAA Men s Final Four Game in San Antonio during their trip. Numerous relocation and expansion leads have been received as a result of the contacts made at this event. Dallas Cowboys Game, November 2007 April 2008 EDS Byron Nelson Golf Tournament, Irving, TX National site consultants were our guests at the Byron Nelson Golf Tournament. Guests also participated in a Thought Leadership Breakfast sponsored by EDS with guest speaker Neil Cavuto, Anchor and Managing Editor of Business News for FOX News. June/July 2008 Sell Texas Event, Washington D.C. & Texas Tourism co-hosted a reception, Texas Traditions A Celebration of the Lone Star State, with more than 400 guests. Gov. Perry joined the group to raise awareness of Texas Traditions Event, June/July 2008 Texas as a meeting and business destination. The event was held in conjunction with the annual Smithsonian Folklife Festival on the National Mall featuring Texas food, music and wine making traditions. September 2008 US Open, New York, NY hosted a signature event at the U.S. Open. The team met with representatives from consulting firms to promote location and expansion opportunities in Texas. Networking opportunities at this event have allowed the state to secure meetings with consultants in additional US markets. US Open, September

10 Member and Industry Events Toyota Plant Tour, December 2007 members are invited to events throughout the year focusing on specific industries which provide an up-to-date overview and forecasts for the future. These events provide a unique opportunity to discuss economic development possibilities within the state s six industry clusters. December 2007 Toyota Plant Tour, San Antonio, TX members had a behind-the-scenes tour of the Toyota plant. The tour was followed by a presentation from Toyota President Ken Fukuta, regarding Toyota s process for choosing San Antonio as its plant location. December 2007 Governor s Summit on Economic Development and Tourism Austin, TX Gov. Perry and former Secretary of State Phil Wilson addressed the Economic Development and Tourism Summit, where they discussed Texas economic success and encouraged businesses and government leaders to continue their pursuit of global competitiveness. Speakers and panel discussions focused on the importance of Texas in the global marketplace through trade, investment and tourism opportunities. 8 Gov. Perry at the Summit on Economic Development and Tourism, December 2007

11 February 2008 EDS Headquarters Tour Plano, TX members took a private tour of the EDS Headquarters in Plano. The tour was followed by presentations and a Q & A session with EDS executives. EDS Headquarters Tour, February 2008 members at the holiday party, December 2007 December 2007 Holiday Party members gather annually to celebrate successes throughout the year. The members were joined by Gov. Perry and members of his staff who congratulated the group on their continued efforts to bring quality jobs to Texas. February 2008/July 2008 Partnership Council Roundtable Meeting tier one and board members meet twice a year for a roundtable meeting with Gov. Perry. Discussions focused on policy, successes, trends and future needs for the state in economic development. The goal of each meeting is to ensure that Texas remains competitive in the global economy. members participated in events across the globe in Business Recruitment Mission Signature Event International Trade & Investment Mission Industry Event Member Event & Forum 9

12 Marketing the Texas Brand Advertising Advertising is strategically placed in trade and industry magazines and within sections that highlight targeted industry clusters or in issues distributed at major trade shows. Effective advertising places Texas message competitively against other states and continues to build awareness of Texas as a premier business location. TEXAS The Preferred Heading for Aerospace Texas has been on the leading edge of aerospace and defense from the beginning of manned flight. The Texas aviation industry supports about 200,000 jobs, 23 airports with customer service, and more than 6.9 million departures and arrivals at commercial airports every year. With 20 colleges and universities and 14 school districts with aeronautical courses, Texas is dedicated to providing opportunities for future aerospace professionals and building the workforce of tomorrow. Find out more about putting Texas on your radar by visiting TexasWideOpenForBusiness.com FDI magazine, 2008 Trade & Industry Development magazine, 2008 Direct Mail Campaigns Direct mail is sent to targeted audiences to promote Texas business incentives and increase brand recognition. Targeted Mailing One recent example of a targeted mailing was a golf-themed mailer to site selectors, touting the positive mix of business and pleasure within the state. 10 Golf-themed targeted mailing pieces

13 Texas Print Collateral Designed as a stand-alone piece, the Texas business brochure provides an overview of the benefits and incentives of doing business in the State. As a companion to the brochure, one-page reports provide in-depth information on the six industry clusters, incentives, and foreign direct investment. THE TEXAS ADVANTAGE T EXASW IDEO PENF ORB USINESS. COM Specialty Brochures Designed for the International Trade & Investment missions. Texas Interactive The Web site provides customized information for site selectors and companies specific to relocation and expansion in Texas. Web site design includes: Interactive Map Highlighting Texas Infrastructure Quick Links for Site Selectors Greater Accessibility Fewer clicks for important information Intelligent Browsing Site suggests related information based on searches 11

14 Texas in the News Texas continued to receive accolades in 2008 for its award-winning business climate and was touted among national and international media outlets and publications. Here are a few examples of what the media had to report on our great state: Texas is America s Top State for Business according to the results of a CNBC study that scored each state on 40 different measures of competitiveness. CNBC, July 2008 Texas ranks as the nation s second largest tech exporting state with $35.9 billion in exports in AeA, Trade in the Cyberstates, September 2008 Texas dominated the Forbes Best Cities To Buy A Home list with four cities in the top ten. Forbes, July 2008 Texas tops the Milken Institute s 2008 economic index with six cities placing in the top twentyfive large metros, more than any other state. Milken Institute, Best-Performing Cities, September

15 For the third straight year, the nation s leading executives ranked Texas as the best state in which to do business. Chief Executive Magazine, January 2008 Texas ranks No. 1 on the 2008 FORTUNE 500 and 1000 lists, for the most number of corporate headquarters located within the state. FORTUNE, April 2008 Texas won the Gold Shovel award for economic development and job creation. The shovel awards are based on information about 10 of the top job-creating and investment projects in Area Development, June/July 2008 Texas ranks No.1 according to Financial Times State of the US Economy, which ranked all 50 states, comparing employment rates, gross state product growth, personal income growth, and foreclosure rates. Financial Times, October 2008 Former Sec. of State Phil Wilson accepting Gold Shovel Award Texas was named the 2007 State of the Year by Business Facilities magazine. Business Facilities, December

16 FY 2009 Activities Outlook Planned events include attending the WINDPOWER 2009 Conference. T he Office of the Governor, Economic Development & Tourism Division will continue to pursue business recruitment missions around the nation and the world in These missions market the state on a oneon-one basis through meetings with company executives, site selectors and media representatives in top markets. members and other Texas communities are invited to participate in the missions. Business Recruitment Missions Domestic and International missions to the following locations are being planned for FY2009: Atlanta, GA Chicago, IL Memphis, TN New York, NY Brazil & Chile Canada France & Germany Mexico United Kingdom 14

17 Signature Events In 2009, will host several signature events to promote Texas as a business location to corporate CEOs and site selectors. Guests at each event include a mix of prospective and located company CEOs. The primary goal is for prospects and site selectors to leave the event with a favorable impression of the state and our business climate. SM Planned TexasOne Signature Events for HP Byron Nelson Championship May 18-24, 2009 Irving, Texas March Houston Livestock Show & Rodeo Event and Texas Tour Business Recruitment Event April AFI Dallas International Film Festival May HP Byron Nelson Championship Direct Marketing Targeted outreach to corporate decision makers and key site selection influencers remains an integral part of the state s economic development marketing strategy. Marketing Collateral Business recruitment missions, trade show and conference participation, signature events and direct mail all rely on compelling brochures and marketing collateral pieces. A new brochure and other collateral pieces will be developed in FY 2009, utilizing a unique design while reinforcing the Texas Wide Open for Business TM brand. To view the most recent versions of our marketing collateral available for download please visit: Advertising Throughout the year, identifies targeted publications in which to advertise. In 2009, Texas may be seen in the pages of publications such as Site Selection, FDI (Foreign Direct Investment), Financial Times, Business Facilities, FORTUNE, Expansion Management, Aviation Week, Electronic News, Semiconductor Manufacturing, America Economia (Mexico and Latin America), The Globe and Mail (Canada) and more. Editorial Outreach We will continue maintaining Texas editorial presence in certain key publications. Relationships have been developed and are actively maintained with editorial staff. Membership by Tier TIER 5 48% TIER 1 12% TIER 4 15% TIER 2 9% TIER 3 16% Total: 153 Members 15

18 Financials Statement of Financial Position As of August 31, UNAUDITED UNAUDITED Assets Cash and Cash Equivalents $1,699, $1,573, Total Assets $1,699, $1,573, Liabilities Total Liabilities Net Assets Unrestricted Net Assets $1,699, $1,573, Temporarily Restricted Net Assets Permanently Restricted Net Assets Total Net Assets $1,699, $1,573, Expenditures Distribution Membership Development 4% General & Administrative 14% Marketing & Advertising 18% Texas Recruitment Activities 25% Lead Generation & Development 39% Member Successes Since its inception, members and their contributions have been directly responsible for our tremendous success. Numbers: Capital Investment in Texas $10,044,185,979 New Jobs Created 27,312 Expansion & Relocation Leads from Events 326 Rankings: Business Climate No. 1 Strength of Texas Economy within U.S. No. 1 Exported Products No. 1

19 Statement of Activities For the Fiscal Year Ended August 31, UNAUDITED UNAUDITED Support & Revenue Total cash donations received $1,650, $1,447, Less: Refunds for Duplicate/Erroneous Payments $(5,000.00) $(5,350.00) Total net donations received $1,645, $1,442, Total registration/participation Fees $37, $18, Total Support & Revenue $1,683, $1,460, Expenditure Categories Lead Generation and Development $603, $153, Texas Recruitment Activities $394, $123, Marketing and Advertising $281, $92, Market Research Membership Development $64, $71, General and Administrative $213, $309, Total Expenditures $1,556, $749, Transfer to non-texasone Program SM To Emerging Tech Initiative per Donor request $(100,000.00) Change in Net Assets $126, $611, Net Assets, September 1, 2007 $1,573, Net Assets, August 31, 2008 $1,699, Revenue By Fiscal Year $300,000 $250,000 $ 200,000 $150,000 $ 100,000 $50,000 $-0- Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Fiscal Year 2005 Fiscal Year 2006 Fiscal Year 2007 Fiscal Year

20 Members Tier 1 ($50,000 annually for three years) Associated General Contractors AT&T CenterPoint Energy Contran Corporation EDS ExxonMobil Greater Austin Economic Development Corporation Greater Houston Partnership Introgen Therapeutics, Inc. McLane Group Novartis Pharmaceuticals Sanders\Wingo Shell Oil Company Tara Energy, Inc. Unisys Corporation Verizon Vinson & Elkins, LLP 18

21 Tier 2 ($25,000 annually for three years) Alliance Texas - A Perot Company American International Group BNSF Railway Company Corpus Christi Regional Economic Development Corporation Frisco Economic Development Corporation IBC Bank Lockheed Martin Aeronautics Company Oncor Electricity Delivery San Antonio Partners Team Texas USAA Wachovia Foundation Western Refining Company Williams Brothers Construction, Inc. 19

22 Members Tier 3 ($10,000 annually for three years) Allen Economic Development Corporation Altria Corporate Services American Electric Power Brooks Development Authority Brownsville Economic Development Council Cedar Hill Economic Development Corporation City of Sugar Land El Paso Regional Economic Development Corporation El Paso Electric Gardere Wynne Sewell LLP Greater Irving Las Colinas Chamber of Commerce Greater Waco Chamber of Commerce HEB Grocery Company, L.L.P. Mansfield Economic Development Corporation Odessa Economic Development Corporation Pearland Economic Development Corporation Pflugerville Economic Development Corporation Plano Economic Development Corporation Proficiency Testing Service Ryan Temple Economic Development Corporation The Research Valley Partnership Zachry Group, Inc. Tier 4 ($5,000 annually for three years) Amarillo Economic Development Corporation Dodge Jones Foundation Economic Development Partnership of Central Texas Entergy Greater McAllen Alliance Hewlett-Packard LCRA Lubbock Economic Development Alliance, Inc. Mansefeldt Investments McCombs Foundation Paris Economic Development Corporation Port of Corpus Christi Richardson Economic Development Partnership Samsung Austin Semiconductor Schulte Building Systems, Inc. Silver Eagle Distributing Tejon Exploration Company Texas Automobile Dealers Association Texas Capital Bank Texas Engineering Extension Service / TED Texas Motor Transportation Association Trinity Industries, Inc. Wichita Falls Board of Commerce and Industry 20

23 Tier 5 ($1,000 annually for three years) Abilene - Senter Realtors Abilene Industrial Foundation Allen Boone Humphries Robinson, LLP Athens Economic Development Corporation Atlanta Economic Development Corporation Beaumont Economic Development Foundation Beirne, Maynard & Parsons, L.L.P. Belton Economic Development Corporation Bridgeport Economic Development Corporation Brown Distributing Company Buda Economic Development Corporation Calhoun County Economic Development Corp. Capital Consultants Celina Economic Development Corporation Charles Clark Chevrolet City of Alvin City of Cedar Park City of Dallas City of Euless City of Farmers Branch City of Lufkin City of Rowlett City of San Angelo Development Corporation City of Waco Commerce Economic Development Corporation Community Development Associates, LLC Craig Wallace Construction Davis Equity Realty Denison Development Alliance Denton Economic Development Partnership E.G.L. Resources, Inc. Ebby Halliday, REALTORS Economic Alliance Houston Port Region Economic Development Alliance for Brazoria County Embarq Fort Worth Chamber of Commerce Galveston Economic Development Partnership Greater Dallas Chamber of Commerce Greater Fort Bend Economic Development Council Greater Killeen Chamber of Commerce Harlingen Economic Development Corporation Harrison, Walker, Harper We Build Houston East End Chamber of Commerce IC² Institute, The University of Texas at Austin Jackson Walker L.L.P. Jumburrito Franchises, LLC Katy Area Economic Development Council Kaufman Economic Development Corporation Kilgore Economic Development Corporation La Marque Economic Development Corporation Lampasas Economic Development Corporation Lexicon Pharmaceuticals, Inc. LH Holdings McWilliams & Associates Midland Chamber of Commerce Mount Pleasant Industrial Foundation Nocona Economic Development Corporation Palestine Economic Development Corporation Planned Community Developers, Ltd. Quan, Burdette & Perez, PC Red River Asset Management LLC Rockwall Economic Development Corporation Rosenberg Development Council Round Rock Economic Development Partnership San Angelo Chamber of Commerce Sulphur Springs Economic Development Corporation Sweetwater Enterprise For Economic Development Terrell Economic Development Corporation Texas Association of Campground Owners The Colony Economic Development Corporation Tomball Economic Development Corporation Town Center Improvement District Town of Flower Mound TVO North America Victoria Economic Development Corporation Waller Economic Development Corporation Weatherford Economic Development Authority, Inc Whitesboro Economic Development Corporation Wholesale Beer Distributors of Texas 21

24 For more information on the Program please visit: or contact: Jennifer Lustina JHL Company Phone: Fax: P.O. Box Austin, TX