4. COA Sales Tax Revenue
Declines
$120
By 2003, the city’s
$117.8 $117.4 revenue from sales
tax had dropped
$115
$13 million,
$110.2 severely impacting
$110 services.
Millions
$105.0
$105
$100
$95
2000 2001 2002 2003
Source: Texas Comptrollers Office
5. Venture Capital
Investment Declines
$2,500
By 2002, venture
$2,076
capital investment fell
$2,000
to 20% of what it had
been two years earlier.
Millions
$1,500
$1,059
$1,000
$448 $496
$500
$0
2000 2001 2002 2003
Source: PricewaterhouseCoopers/Venture Economics/NVCA.
6. Meanwhile…
Austin had taken itself out of the
economic development “game”
Austin Chamber’s economic development funds
were being diverted for operations – annual
funding for economic development was
$500,000
Chamber’s website for site selection and
business relocation/expansion was “under
construction”. . . for over 5 years
Chamber had one full-time staff member
focused on economic development
A City employee skipped a meeting with a
major auto manufacturer
7. Opportunity Austin
5-Year Plan
Program Goals:
72,000 net new jobs
$2.9 billion net increase in
payroll
$14 billion in GRP
10. Summary of Results
5-Year 5-Year
Result Goal
New Jobs 124,200 72,000
Payroll Increase $5.7 Billion $2.9 Billion
Corporate relocation
144 100
announcements
Out-of-region visits 835 500
Prospect visits 540 250
Regional retention
857 475
visits
11. Opportunity Austin
Relocations By Target Industry Sector
(2004-2008)
Clean Energy 6
Data Center 5
Digital Media 15
Headquarter/Regional Office 29
Life Sciences 13
Semiconductor 13
Software 17
Wireless 8
Other IT 11
Other 27
TOTAL 144
20. Austin Companies in the
News in 2008
Advanced Micro Devices Jewelery Channel closes in Round Rock
lays off 364
Applied Materials lays off 650
Midway Games cuts 50
Austin jobs
Dell eliminates 900 manufacturing jobs
300 jobs lost with ModusLink
Aquatic Industries closes Leander closing in Round Rock
plant
Education Finance partners closes NCsoft downsizes
student loan service center
Austin Studio by 100
Freescale downsizes by 138 jobs
Harcourt Education eliminates
200 jobs
21. Austin Companies in the
News in 2009
Google closes recently
established Austin office
Applied Materials downsizing Spansion cuts 163 Austin
continues with another 60 layoffs jobs
Sun Microsystems prospects
uncertain following acquisition
Freescale downsizes by 319 jobs
22. Fastest Growing Among
Top 50 Metropolitan Areas
Non-farm Growth June ‘08-June ‘09
payroll jobs Rank
June ‘09 Difference % Ch.
Austin MSA 778,700 -1,200 -0.2% 1
San Antonio MSA 855,900 -6,300 -0.7 2
Virginia Beach MSA 774,000 -7,600 -1.0 3
Fort Worth MDiv 869,000 -13,700 -1.6 4
Newark MDiv 1,031,500 -16,800 -1.6 5
Washington MDiv 2,411,200 -41,000 -1.7 6
Columbus MSA 931,600 -15,900 -1.7 7
Memphis MSA 616,800 -12,900 -2.0 8
Kansas City MSA 1,008,300 -21,300 -2.1 9
Dallas MDiv 2,078,200 -44,600 -2.1 10
Source: U.S. Bureau of Labor Statistics.
23. Fastest Growing Among
Top 50 Metropolitan Areas
Growth June ‘08-June ‘09
Non-farm
payroll jobs Rank
June ‘09 Difference % Ch.
Baltimore MSA 1,296,200 -32,000 -2.4 11
New York MDiv 5,187,700 -130,300 -2.5 12
Boston MDiv 1,687,800 -46,000 -2.7 13
Houston MSA 2,550,900 -69,600 -2.7 14
Pittsburgh MSA 1,135,400 -31,200 -2.7 15
Philadelphia MDiv 1,880,600 -54,500 -2.8 16
Nassau MDiv 1,249,200 -40,300 -3.1 17
Richmond MSA 616,100 -21,800 -3.4 18
Indianapolis MSA 890,000 -33,000 -3.6 19
Miami MDiv 1,000,700 -37,200 -3.6 20
Source: U.S. Bureau of Labor Statistics.
24. Job Growth, Peer Metros
June 2008-June 2009
0%
-0.2%
-1%
-2%
-3%
-3.0%
-4%
-3.9%
-5% -4.3% -4.3%
-6%
-7%
-8% -7.6%
Source: U.S. Bureau of Labor Statistics.
26. Opportunity Austin 2.0
MAJOR GOALS
In the next 5 years:
1. Create a net gain of more than
117,000 jobs
2. Increase greater Austin’s total
payroll by $10.8 billion
30. Opportunity Austin 2.0
Economic Diversification
“Base” Target Industries
Creative media
Media Development
Production
Distribution
The marketing of:
– Music
– Film
– Television
– Video Game Industries
31. Opportunity Austin 2.0
Economic Diversification
Target Industries
Green industries
Solar panels
Fuel cells
Wind turbines
Electric cars
Clean Energy
Green Products
32. Opportunity Austin 2.0
Economic Diversification
Target Industries
Healthcare & Life Sciences
Medical Devices
Bio-tech
Bioinformatics
Bioscience
Nanoscience
33. Opportunity Austin 2.0
Economic Diversification
Fund & Staff a Comprehensive
International Development Program
Samsung Recruiting Trip to
Korea
Recruiting Trip to
Mexico with UT Austin
44. Opportunity Austin 2.0
• Campaign launched in May 2008
• 312 companies/organizations have pledged to
invest in O.A. 2.0
• 153 - new investors
• Contributions are up 67% from original
investors
• Total as of August 31, 2009: $18,329,400
45. Opportunity Austin 2.0
Efforts as of August 2009
August 09 August 08 2009 YTD Annual Goal 5‐Year Goal
OUT OF REGION VISITS 26 9 180 120 600
SOURCES OF LEADS 22 102 181 80 500
State 2 28
Site Consultants 4 22
National Broker ‐ 6
Local Broker 2 19
Web 2 10
Out of Region Visits 1 42
Direct Company 5 23
Referral 6 31
LEAD GENERATION 81 ‐ 350 500 2500
Cold Calls 48 203
Out of Region Visits 17 110
Electronic Communication 16 37
PROSPECT FOLLOW UP REQUEST 206 ‐ 1316 ‐ ‐
PROSPECT VISITS 15 9 99 40 300
New (1st) 7 54
Repeat 8 45
ANNOUNCEMENTS 1 2 9 15 115
REGIONAL RETENTION VISITS 87 29 420 360 1800