Presentation by Bruce Katz, Vice President of the Brookings Institution and Director of the Metropolitan Policy Program.
Global Cities Initiative forum in Houston, TX on May 15, 2013.
The Global Cities Initiative is a Joint Project of Brookings and JPMorgan Chase.
For more information: http://www.brookings.edu/projects/global-cities.aspx
14. Economic Performance
2011 - 2012
Highest Performing Metros
Lowest Performing Metros
Source: Brookings, Global MetroMonitor, November 2012
15. Exports Share of GDP
2010
13%
United States
29% 22%
15%
30%
Japan
China Canada India
European Union
15%
Source: Brookings analysis of WTO and EIU data, 2011
28. 1.4 millionbiosciences jobs
4.8 millionIT jobs
2.4 millionfossil fuel jobs
2.7 millionclean economy jobs
Sources: Brookings-Battelle Clean Economy Database (2011), Brookings Analysis of Battelle, BLS, Moody’s Analytics data
35. Source: EOP “A Framework for Revitalizing American
Manufacturing” (2009)
Brookings “Accelerating Advanced Manufacturing with New
Research Centers” (2011)
90%manufacturing
share of patents
68%manufacturing
share of R&D
35%manufacturing
share of engineers
37. US Names China On
Intellectual-Property
Watchlist
China's insufficient protection of
intellectual property rights remains a top
priority for U.S. trade policy, given the
"troubling" direction of recent government
measures aimed at supporting domestic
innovation, the U.S. Trade Representative's
office said Monday.
China Begins to Lose
Edge as World’s Factory
Floor
January 16, 2013
BEIJING - China is losing its competitive
edge as a low-cost manufacturing base, new
data suggest, with makers of everything
from handbags to shirts to basic electronic
components relocating to cheaper locales.
The shift - illustrated in weakened foreign
investment in China - has pluses and
minuses for an economy key to global
growth.
Shale Gas Fuels U.S.
Manufacturing
Renaissance
January 10, 2013
Abundant, affordable domestic natural gas
is helping to revitalize energy-intensive
industries like petrochemical
manufacturing.
“Looking back 20 years, chemicals were
out nation’s top export product. But as
recently as five years ago, we were on the
verge of becoming an importer. Now the
industry is back.
January 19, 2013
The number of firms known tohave “reshored” manufacturing to
America is well under 100.Doubtless many more are doing so
quietly. Examples range from the
tiny, such as ET Water Systems, to
the enormous, such as General
Electric, which last year moved
manufacturing of washingmachines. fridges, and heaters
back from China.
Reshoring Manufacturing:Coming Home
38.
39. 11%wage premium
in exporting firms
Source: Istrate, Rothwell & Katz, Export Nation (2010)
Greater likelihood
of health and
retirement benefits
in export-intense
industries
42. Source: US Census Bureau, 2010 American Community Survey
Hispanics
19%
African
Americans
Non-Hispanic
Whites
Asians
25%
39%
56%
Educational Attainment
Associate’s Degree or Higher
United
States
36%
43. Source: US Census Bureau, 2010 American Community Survey
Hispanics
19%
African
Americans
25%
Educational Attainment
Associate’s Degree or Higher
48. Texas
Austin, Dallas, El Paso, Houston, McAllen, San
Antonio
Population GDP
Corpus Christi, Brownsville, Killeen, Beaumont, Lubbock,
Amarillo, Laredo, Waco, College Station, Longview, Tyler,
Abilene, Wichita Falls, Odessa, Midland, Sherman, Victoria,
San Angelo, Texarkana
88% 89%
50. Top 100 Metro Exports
Chemical
Products
68%
76%
Business/
Professional
Services
Computer/
Electronic
Products
78%
Population
66%
Share of U.S. Totals
Source: Brookings, ExportNation 2012
51. Top 100 Metro Trade Logistics
U.S. Air
Cargo
Weight
82% 88%
Foreign
Waterborne
Cargo Weight
Airline
Boardings
92%
Population
66%
Share of U.S. Totals
Source: Brookings analysis of US Census Bureau, FAA, and PIERS data (2009)
58. 217,527
US
Houston
Metro
Manufacturing
Intensity
8.5% 8.5%
Manufacturing Jobs
Top Manufacturing Sectors
Houston, TX Metro Manufacturing Dashboard
Fabricated Metals 20.9%
Machinery 19.5%
Chemicals 15.3%
Computers & Electronics 8.4%
Petroleum & Coal Products 5.8%
US
Houston
Metro
Manufacturing
Growth
2010 Q1 - 2011 Q4
2.7%
5.9%
Source: Brookings, Locating American Manufacturing 2012
59. $47.9 B
Top 100
Metros
Houston
Metro
Export Intensity
9.8%
14.0%
Export Volume
Goods & Services Exports
71.9%
goods share of
exports
Houston, TX Metro Export Dashboard
307,000
Export Jobs
28.1%
services share
of exports
Top Services SectorsTop Services Sectors
Travel and Tourism 8.9%
Business Services 6.9%
Royalties 5.6%
Top Manufacturing SectorsTop Manufacturing Sectors
Chemicals 20.3%
Machinery 15.1%
Petroleum and Coal
Products
14.9%
Source: Brookings, ExportNation 2012
60. Houston, TX Metro Export Dashboard
Source: Brookings, ExportNation 2012
Houston’s Top Export Destinations
By 2010 Volume (in millions)
Canada
Mexico
Japan
United
Kingdom
China
$7,491.5
$5,157.8
$2,635.4
$2,358.2
$2,289.5
Germany
Brazil
South Korea
Singapore
Netherlands
$1,853.3
$1,724.3
$1,678.4
$1,467.3
$1,323.4
61. Houston, TX Metro Global Aviation Dashboard
Source: Brookings “Global Gateways: International Aviation in Metropolitan America” (2012)
Share of Houston Passenger Air
Travel to Major Global Regions
By 2011 Total Passengers
Houston’s Top Air Travel Connections
By 2011 Total Passengers
Latin America/
Caribbean
Western Europe
Developing
Asia/Pacific
45.8%
Rest of
World
19.6%
10.2%
24.4%
Mexico City 311,849
London
Calgary
Cancun
Monterrey
227,883
139,285
130,974
110,365
62. Houston, TX Workforce Dashboard
Sources: Brookings, State of Metropolitan America (2010), Geography of Immigrant Skills (2011), Demand for H-1B Immigrant Workers in US Metros (2012)
29%
36%
16%
Job
Openings
All
Adults
Unemployed
Workers
Bachelor’s Degree Attainment by Industry
46% 43%
Energy Healthcare
18%Houston
Employment
Immigrant Skills Gap
22.3%immigrant
share of population
11thof 100 metros
High SkilledLow Skilled Middle Skilled
42.6% 43%
30%28%
35.1%
22.3%
Immigrant Skills
Age 25+
US Houston US Houston US Houston
Skills Gap
Job Openings
Requiring, and
Adults Possessing,
Bachelor’s Degrees
63. 1 2 31 2
3
Metropolitan areas
are driving innovation
METRO
INNOVATION
65. Market Assessment
Target Sectors
8% 9%
12%
Economic Profile
15%
12%
13%
9%
Establish Goals & Strategies
Boost SME exportsIncrease global fluency
Double exports Support key sectors
Governments
Philanthropy
Firms
Universities
Collaborate to CompeteLos Angeles
Minneapolis-
Saint Paul
Portland
Syracuse
Metropolitan Export Planning
66. Metropolitan Export Planning
Portland
Target industries: computers and
electronics, clean technology & innovation
Goal: Double exports in the next five years
Strategies:
1. Leverage primary exporters in computer
and electronics
2. Catalyze under-exporters in manufacturing
3. Improve the export pipeline for small
business
4. “We Build Green Cities” - brand and
market Greater Portland’s global edge
67. Metropolitan Export Planning
Portland
Target industries: computers and
electronics, clean technology & innovation
Goal: Double exports in the next five years
City of
Portland
Mayor’s Office
68. Los Angeles
Metropolitan Export Planning
Strategies:
1. Establish the Los Angeles Regional Export
Council
2. Target high-opportunity market segments
3. Market the Los Angeles region to the world
Target industries: aerospace, computers
and electronics, pharmaceuticals, film and
television, professional services
Goal: Double exports in the next five years
& foster more globally-fluent, export-
oriented business culture
69. University of
Southern
California
University of
California Los
Angeles
City of
Los Angeles
Los Angeles Regional Export Council
Los Angeles
Metropolitan Export Planning
Target industries: aerospace, computers
and electronics, pharmaceuticals, film and
television, professional services
Goal: Double exports in the next five years
& foster more globally-fluent, export-
oriented business culture
71. Houston
Build on Metropolitan Houston’s Strengths
Target industries
Goals
Network
Strategies
Metropolitan Export Planning Metropolitan
Houston
Export Plan
72. Building a 21st Century Workforce for
the Houston Region
Goal: Develop comprehensive workforce
strategy to tackle challenges in the
Greater Houston Region
GHP Workforce Development Taskforce
Houston
74. Pennsylvania
Center for Trade & Development
State Governments
22 foreign trade
offices
firms assisted with
exports1,350
new exports from
assisted firms, 2010$483 m
Florida
Enterprise Florida
12 international
offices
$3 b
state GDP added from export
assistance & business
development in 2011
75. State Governments Colorado
Space Cluster
4 states joining Colorado to advocate for
and promote space cluster initiatives
$20m competitive matching grants for
early-stage tech development in CO
Ohio
Third Frontier & Edison Tech Centers
7 regional centers providing innovation &
commercialization services
to foster innovation
ecosystem in Ohio
2010-2016
$700 m
76. Reform
Immigration for
Competitiveness
Open New
Markets
Free Trade
AgreementFree Trade
AgreementFree Trade
Agreement
Federal Government
Modernize &
Prioritize Trade
Corridors
National Freight
Strategy
Trans-Pacific
Partnership
Europe
Export
Financing
International
Market
Intelligence
International Trade
Administration
Export-Import Bank