to our valued2011 PIVOTAL PARTNERS Pivotal Partners of the Austin Chamber of Commerce support a comprehensive program of work in economic development, education and talent, government relations, regional infrastructure, technology, and small business programming, as well as business attraction, retention and expansion efforts in Central Texas.
2011 TABLE OF CONTENTS ANNUAL REPORTMessage from the Chair 3Membership 4Marketing 8Transportation & Infrastructure 10Talent & Education 12Economic Development 14Technology 16Financials 20Board of Directors 21Advisory Board Members 23 Greater Austin Chamber of Commerce | austinchamber.com
3 MESSAGE FROM THE CHAIRThe Austin Chamber of Commerce is proud to report that 2011 was one of the mostsuccessful in our 135 year history. Our membership is 2,500 strong and growing, andour programming continues to evolve to meet the changing needs of our businesscommunity.Cities across the world are carefully looking at Austin to see why it is we are enjoyingeconomic success in our business and industry. It is precisely this growth that hasgarnered media attention from around the globe in 2011. Publications and outlets –including Forbes, MSNBC, TIME Magazine, CNN, Bloomberg, Reuters , BBC and more– feature the thriving Austin business community. Small and large businesses alikebenefit from this attention and its core message: Austin is open for business.Your Chamber is here to support you with a variety of programs, services and eventsthat help to shape the community we are all proud to call our home. The professionalstaff and our volunteer business leaders invest their time on a range of initiativesthat impact the business community – from public policy to education to businessattraction, to transportation, to technology to small business and more.Thank you for helping the Chamber tell the compelling story of business success inCentral Texas. And on behalf of the board of directors, thank you for doing businessin Austin. BOBBY JENKINS 2011 Chair Austin Chamber of Commerce
4An analysis of the Greater Austin Chamber of Commerce’s currentmembership shows a diverse membership base made up of theseprimary categories: Number of Annual Dues MembersProfessional, Scientific, & Technical Svcs 19.2% 481 23.8% $516,342Finance and Insurance 14.4% 361 13.1% $285,240Other Services 9.8% 247 5.0% $107,675Accommodation & Food Services 8.3% 209 7.5% $162,937Real Estate, Rental and Leasing 8.0% 200 6.0% $131,037Health Care, Social Assistance 6.9% 172 8.5% $184,907Construction 5.3% 132 5.7% $124,047Retail 4.7% 117 5.2% $112,305Educational Services 3.7% 92 2.9% $62,521Manufacturing 3.2% 81 8.5% $184,636All Others 16.6% 416 13.8% $300,211TOTAL as of DEC. 21, 2011 100% 2,508 100% $2,171,856Average number of Full Time Equivalents per member: 94.44Average dues per member: $866
5 CHAMBER MEMBERSHIP In 2011, the Austin Chamber of Commerce worked to make a positive impact on Austin’s regional economy by supporting the growth and prosperity of its members. As one of the largest chambers of commerce in Texas, Austin welcomed 610 businesses as new members last year. Our member retention rate is positive – 79% of membership dues were retained in 2011. In 2011, the Chamber kicked off a number of exciting new initiatives within its Membership Division. The Chamber has created a Small Business Advisory Council to lead the Small Business efforts for the organization. In addition, the Chamber has partnered with Texas State’s Small Business Development Center to provide free, on-site business counseling services for our members. The Chamber has embarked on a sales training program for its membership sales staff to ensure a professional sales experience for new members. The Chamber also has engaged the services of a Membership Retention specialist to improve its member retention strategies. Cedar Park $5K-$10K 1% All Others* .8% > $10K 8.4% .8% Round Rock $3.5K-$5K 1% 2.8%$1.5K-$3.5K 38.2% < $499 Austin 51.9% 87.8% $500-$1,500 38.2% ANNUAL DUES BY CITY *(includes Georgetown, Pflugerville, Lakeway, San Antonio, San Marcos, Buda)
62011 VOLUNTEERS OF THE YEARMichael Laing, Wells Fargo; Rob Hutton,Lennar; Mark Curry, Wells Fargo; DavidReiter, Luminex Corporation; Tracey Nelson,Maven Marketing Solutions; Joe Cantalupo,Parsons Brinckerhoff; Ray Wolf, GreenIntegrated Services; John Price, Vast.com 2011 AUSTINITES OF THE YEAR Nick Barbaro, publisher and co-founder of the Austin Chronicle; Roland Swenson, co-founder and current managing director of SXSW; Hugh Forrest, Director of SXSW Interactive; and Louis Black, co-founder of SXSW and editor of the Austin Chronicle. GLOBAL CONNECTIONS WITH THE CHAMBER The Chamber led its first group trip to China in 2011 as part of a new international travel program.
7 PROGRAMS EVENTSThe Chamber offers a range of programs, member benefits, advertising opportunities andadvocacy initiatives to provide value to our business community. Throughout the year, 254members were engaged in the work of the Chamber through Area Business Councils. In 2011,the Chamber produced over 100 meetings and events with over 10,000 attendees, including: • C hamber 2011 Annual Meeting: This sold-out event honored our 2010 Chamber Volunteers of the Year, and the 2010 Austinite of the Year, Lance Armstrong. • C EO Peer Advisory Groups: This program was created for C-level executives to provide members with access to their own confidential board of advisors who gather monthly to exchange best practices, past experiences, thoughts, ideas and overall general guidance regarding growth, health and overall success in their business. • B usiness by Referrals: This popular six-part educational series teaches members to identify top referral contacts and provides participants with a proven system to maintain and build upon this list. • C hairman’s and President’s Advisory Boards: A series of networking receptions and special events were held throughout the year, exclusively for members investing at the Chairman’s and President’s levels. • G reater Austin Business Awards: The Chamber’s annual awards dinner attracted over 1,000 attendees and recognized the best of Austin businesses of all sizes.
8CHAMBER PUBLICATIONSIn 2011, the Chamberdeveloped new collateralfor its members, includingAll About Austin, A JobSeekers Guide to Austin andupdated industry directories.In partnership with TexasMonthly, the Chamberproduced the Greater AustinNewcomer’s Guide and the CentralTexas Economic DevelopmentGuide. THE VOICE OF BUSINESS BRANDED ADVERTISING CAMPAIGN Working with our media partners, the Chamber built a branded advertising campaign, “The Voice of Business,” with rotation on television, radio, print and web. The campaign was designed to speak to audiences within each of the division lines, with a focus on small business--- 85% of the Austin Chamber membership.
9 MARKETING COMMUNICATIONSSHARING AUSTIN’S STORY WITH THE WORLDAs part of our media strategy, more than 430 unique articles on Austin businesses wereseen in publications including the New York Times, Wall Street Journal, Time Magazine,Forbes, Bloomberg, Information Management, The Economist and more. 5% 3% 96.8% Mentions by Topic 23% 435 5% Year-over- Year Economic Development 10% Increase Technology Education 221 Jobs April-December Entrepreneurial 16% Clean Energy/Tech 21% Municipal Issues BioSciences 17% 2010 2011 WEB INTERACTIVE The Austin Chamber completely revamped its website in 2011 to better reflect the organization’s program of work as well as the initiatives of the business community. Based on year-over-year metrics, the site’s bounce rate decreased 28%, pages per visit increased 100%, and average time on the site increasedORGANIZATIONAL OUTREACH by 113%. From an awareness standpoint: visitsIn 2011, open rates on the Chamber’s increased 423%, and organic search visits havee-marketing for programs and other increased 357%.outreach increased from from 8% to 21%.The revamped FOCUS newsletter, Year-end 2011 metrics show a higher level ofpreviously averaging an 8% open rate, monthly visitors sustained and growing: 67%increased to a 16% open rate. new visitors, 32% returning, with average pages visited at 2.74 per sessionAVERAGE OPEN RATES(compared to national industry averages) The Chamber’s Facebook account saw21.3% Austin Chamber an increase of 17% in new likes with a20.6% Associations 246% increase in post interaction, and21.7% NonProfits Twitter followers doubled between April16.5% Business Services and December, from 3,021 to 6,069.
102011 TRANSPORTATIONACCOMPLISHMENTSNewly opened facilities • Ben White at IH 35 interchange • SH 130 at Cameron Road ramps providing access to Austin Executive AirportFacilities under construction • 183A Phase II to open April 2012 • Manor Expressway (US 290 E to SH 130); Phase I expected to open in late 2012 • Loop 1 at US 290 W interchange to open in 2012 • Ben White overpass bridge at Riverside to open in 2014Projects proceeding on time • Mopac Phase I express lanes (Parmer to Cesar Chavez) to open in 2016 • Y at Oak Hill interim improvements; Phase I expected to open in 2013 • SH 71 E at FM 973 interim improvements; expected completion in 2013 • First Capital Metro Rapid line expected to open in late 2013Projects moving forward withenvironmental study underway • SH 45 SW with study performed by TxDOT • US 183 S with study performed by CTRMA
11 PUBLIC POLICY TRANSPORTATION AND INFRASTRUCTURETransportation and infrastructure remain top priorities forCentral Texas, and the Chamber continues to be a leadingadvocate for improving regional mobility.In 2011, Chamber board members were appointed to lead keyinitiatives, including Senator Watson’s Mobility ImprovementPriorities Task Force, the City’s 2012 Bond Election AdvisoryTask Force, and CAMPO’s Transit Working Group. Chamberleadership also facilitated dialogue to implement solutions for D.C. Visit, May 2011congested intersections such as 5th and 6th Streets at Lamar The Chamber’s annualand Parmer at Dessau. trip to Washington D.C. strengthens relationships with key leaders in theAnother key infrastructure priority is the funding, White House and in federal government agencies todevelopment and construction of a top-tier four-year medical promote issues importantschool associated with The University of Texas. Chamber to Chamber members;leadership is actively involved with Senator Watson’s working such as transportation, international trade andgroup on this project, which would enable a substantial technology.expansion of the life sciences business sector in Central Texasand create a broad new avenue of opportunity for privatesector jobs.The Chamber supports a comprehensive strategy to plan forfuture water needs, including conservation, increased use ofreclaimed water and construction of a new Water TreatmentPlant 4. In 2011, following a report from the City Auditor,elected officials agreed that delaying the project wouldbe too costly, and Water Treatment Plant 4 will now moveforward. At the state level, the Texas Water Development InterCity Visit, Sept. 2011Bonds Amendment (SJR 4) was passed, allowing increased More than 100 delegates traveled to Charlotte, NCfunding for statewide water infrastructure. for the Chamber’s eighth annual InterCity Visit to learn from the similarities and visions that the two cities share.
12 K-12 EDUCATION PROGRESS REPORTS The Austin Chamber, in partnership with localy? chambers of commerce, issued progress reportschool for the Austin, Del Valle, Eanes, Hays, Hutto,ace. Lake Travis, Leander, Manor, Pflugerville, Round Rock, and San Marcos ISDs. These reports monitor progress and report out-year school district targets for direct college enrollment, college readiness, high school graduation and TAKS pass rates. FINANCIAL AID SATURDAYS The region’s 2011 Chamber Financial Aid Saturday events helped 2,000 families submit federal financial aid forms. Regional Q1 2011 FAFSA filings have increased 102% since 2006. Class of 2011 financial aid is up $50 million over Class of 2006. “ he Austin Chamber of Commerce quarterbacks the strategic provision of T resources and support and leads sophisticated efforts to hold districts’ feet to the fire with the pioneering report card and a firm commitment to weighing in on political issues and questions of funding.” – “Partnership is a Two-Way Street: What it Takes to Help Drive School Reform,” U.S. Chamber Of Commerce, June 2011
13 EDUCATION TALENT Opportunity Austin’s groundbreaking talent pipeline initiatives are recognized as a national model by the U.S. Chamber of Commerce. As part of the Opportunity Austin initiative, the Chamber and 15 area school districts set a 70% direct-to-college enrollment goal for the Class of 2015, up from 62% for the Class of 2010. • T he region has the most sophisticated regional database (Central Texas Student Futures Project) to track individual high school, employment, military and post-secondary education data records in the United States. • A task force of business and community leaders also produced an Austin Community College (ACC) progress report, detailing ACC’s accomplishments and identifying areas for growth, addressing talent development needs specific to certain industries in Austin. • T he region’s Skillpoint College/Career Expo exposed 13,000 Central Texas high school students to Austin careers and the post-secondary education they require. • A ustin ISD’s college/career readiness rate has increased from 38% to 55% from the Class of 2008 to the Class of 2010. 6th Annual State of EducationTony Befi, Chamber Vice Chair Education/ 6 Ideas That Will Change the WorldTalent Development; Vice President, IBM
15 ECONOMIC DEVELOPMENT DIVERSIFICATIONThe Austin area experienced tremendous economic vitality in 2011, with 51 businessesexpanding their offices, industrial production and job force. In addition, 35 new companieschose to relocate their businesses to our region from other parts of the country, an increasefrom 29 in 2010. This economic development occurred across myriad industries, including keygrowth industries such as biopharmaceutical, high tech, digital media and clean tech. Strategicrecruitment efforts will continue to further diversify Austin’s business portfolio, and secure theregion’s national reputation as a center of human capital and innovation. JObS 2011 4,096 RELOCATIONS BY INDUSTRY SECTOR JObS Clean Tech 3 Data Center 2 3,128 Digital Media 6 HQ/Regional Office 1 Medical Device/Bioscience 1 Semiconductor 1 JObS Software 6 547 Wireless 7 Other IT 3 Other 5 TOTAL 35 2009 2010 2011 17 29 35COMPANIES COMPANIES COMPANIES
18In 2011 the Chamber continued the implementation of the Technology Partnership, created inlate 2010 by the Chamber board of directors to provide outreach to the regional technologycommunity. The technology sector includes over 3,900 companies within a five-region areasurrounding Austin. In fact, tech companies account for 12% of the region’s total workforceand 25% of the area payroll. Because such a significant percentage of our workforce is engagedin technology, the business retention and expansion work of the Chamber is now alignedunder the Technology Partnership.Last year, the Technology Partnership engaged over 100 regional tech executives to provideinput and direction to the strategies related to not only business attraction and retention butalso company formation. Seven technology special interest groups (SIGs) focused the initiativein the following industry segments: Technology Manufacturing, Clean Technology, LifeScience/Healthcare, Mobile, Gaming, Advertising Technology, and Software.Throughout 2011, Austin saw its regional venture capital investments increase by 13% to over$1.1 billion. With 6,000 new technology jobs created, the region experienced the largest yearover year increase in the past decade. Of note in 2011 was the launch of the Startup Austin Texas web portal of the Startup America Partnership. Austin was the first region in Texas to participate in this national web initiative. And to increase the visibility of regional technology startups seeking funding, the Chamber also created the Austin A-List, THE AUSTIN A - LIST an easy go-to source for tech startup investors. 25 of the Hottest Startups Greater Austin Chamber of Commerce
19 TECH PARTNERSHIP BUSINESS RETENTION AND EXPANSIONBecause 80% of new jobs are created TOP BUSINESS ISSUES (ALL INDUSTRIES)by existing businesses, retaining the % of employment % of companiescompanies that are currently here 1. RECRUITMENT PROBLEMSand fostering their growth is a topstrategic priority. Throughout 2011, 50%the Chamber’s Business Retention 81% Expansion team (BRE) workeddiligently to engage with Central 2. AIR SERVICETexas executives and identify the top 50%issues impacting regional businesses. 48%The team visited over a thousandcompanies, and conducted extensive 3. TRAFFICsurveys with more than 300 of the 27%top regional executives to discovertheir business needs. 44%TOP BUSINESS ISSUES (BY INDUSTRY SEGMENT)CLEAN TECH IT/WIRELESS NON TECH 1 Traffic Control 1 Recruitment Problems 1 Recruitment Problems 2 Recruitment Problems 2 Available Workforce 2 Adverse Legislation 3 Public Transportation 3 Air Service 3 Public TransportationSEMICONDUCTOR ADVANCED MFG BIO/HEALTHCARE 1 Recruitment Problems 1 Recruitment Problems 1 Adverse Legislation 2 Air Service 2 Public Transportation 2 Recruitment Problems 3 Adverse Legislation 3 Traffic Control 3 Business Climate Negative (Soft-landing issues)EXECUTIVE SURVEYSTotal employees represented /// 84,779 More than 100 employees /// 81 (26%) Regional payroll represented /// $6.3 Billion Fewer than 100 employees) /// 225 (74%)
20AUSTIN CHAMBER OF COMMERCE 2011 FINANCIALSACTUAL REVENUE: $3.43 million ACTUAL EXPENSES: $3.28 million $266,123 $347,363 $1,215,843 $1,124,624 $1,020,964 $2,041,405 $274,256 $421,444 Membership Dues Government Relations Sponsorship Activities and events Membership Miscellaneous Communications Economic Development Operations OPPORTUNITY AUSTIN 2011 FINANCIALSINVESTOR RELATIONS | $76,837OPPORTUNITY FUND | $86,941 KEEPING GREATER AUSTIN GREAT | $176,901 BUSINESS RETENTION EXPANSION | $570,621 EDUCATION | $1,265,043 ECONOMIC DIVERSIFICATION | $1,362,373 2011 ACTUAL EXPENSES | $3,538,716
212011 ANNUAL REPORT BOARD OF DIRECTORSCHAIRMAN VICE CHAIR REGIONAL Gary NauertBobby Jenkins INFRASTRUCTURE Texas Regional Manager // DPRPresident // ABC Home Greg Weaver Construction, Inc.Commercial Services Managing Director // Catellus Development Group Darrell Pierce Principal // SNAP ManagementCHAIRMAN-ELECT VICE CHAIR SMALL BUSINESS Group, Inc.Clarke HeidrickChairman // Graves, Dougherty, Ron Meredeith David RodriguezHearon Moody Partner // Richards Rodriguez VICE CHAIR TECHNOLOGY Skeith, LLPIMMEDIATE PAST-CHAIR Gene AustinBarry Mayer CEO // Convio Jim SnikerisPresident // Tokyo Electron Vice President // FarmersU.S. Holdings, Inc. LEGAL COUNSEL Insurance Group Scott LineberryVICE CHAIR ECONOMIC Managing Partner // DuBois, Bill Stotesbery Bryant Campbell, LLP President CEO // KLRU-TVDEVELOPMENTTim Crowley Sharon WatkinsRegional President, Austin Region // MEMBERS AT LARGE Melissa Herkt Owner // Chez Zee American BistroFrost President/COO PlantWeb Solutions Group // Emerson Process Ellen WoodVICE CHAIR EDUCATION/ Management CEO // vcfoTALENT DEVELOPMENTTony Befi TERMS EXPIRING Laura KilcreaseVice President, POWER Systems and DECEMBER 31, 2012 Managing Director // Triton VenturesStorage Program Management // IBM David Anderson Bill Jones Vice President/General Manager //VICE CHAIR FINANCE Owner // The Jones Firm Hardin Construction Company, LLCSteve KnebelLeading Partner // Maxwell, TERMS EXPIRING Debbie FindlayLocke Ritter LLP DECEMBER 31, 2011 Regional Vice President, Finance-West and West Central Regions // Humana, Inc.VICE CHAIR GOVERNMENT Jim DeCosmo President CEO // Forestar Group Inc. Henry GilmoreRELATIONSCraig Enoch Attorney // DuBois Bryant Campbell Patrick FlynnPartner // Enoch Kever President // Flynn Construction, Inc Fred Heldenfels IV President CEO // HeldenfelsVICE CHAIR MARKETING AND Phillip Hawkins Enterprises, Inc.COMMUNICATIONS Senior Vice President // State FarmDuff Stewart Insurance Companies Steve KinslowPresident, CEO // GSDM IdeaCity President/CEO // Austin Community Steve Leslie CollegeVICE CHAIR MEMBERSHIP Executive Vice President Provost //Leslie Pchola The University of Texas at Austin Ron MeredeithGeneral Manager // Hilton Austin
22BOARD OF DIRECTORS (CONTINUED)Carl Mica TERMS EXPIRING Adam HauserDirector of Business Relations // DECEMBER 31, 2013 Managing Partner // Brown McCarroll,The University of Texas System LLP Mark ClaytonLeslie Pchola Senior Vice President // St. David’s John HolmesGeneral Manager // Hilton Austin HealthCare Vice President, Legal // Freescale SemiconductorJeff Thomas Nancy EbeSenior Vice President/General Manager Founder // Ebe Associates, PC Bill JonesTexas Region // H-E-B Owner // The Jones Firm Karen FrieseDave Tripoli President // K Friese Associates Dave MartinOperating Partner // Truluck’s Vice President CFO //DimensionalRestaurant Group Tom Griebel Fund Advisors Vice President Corporate Development //Ashok Vadgama Pape-Dawson Engineers, Inc. Shane MenkingPresident // CAM-I President CFO // Data Foundry Inc. Mark HarrisDoug Waite Vice President Operations and Terry MitchellSenior Vice President CFO // Technology – Human Resources // Dell, President // Momark Development LLCSeton Family of Hospitals Inc. Greg Phillips President // Texas Gas ServiceEXECUTIVE STAFF FOUNDATION AND CORPORATE PARTNERS Both of which support the ChambersMichael W. Rollins, CCE business initiatives for the greaterPresident CEO Austin region.Susan DavenportSVP, Global Technology StrategiesJeremy Martin, IOM 2011 FOUNDATION PARTNERSSVP, Government RelationsRebecca Martin, IOMSVP, Marketing CommunicationsDave Porter, CEcDSVP, Economic DevelopmentJan RiepenCFO/SVP, Finance 2011 CORPORATE PARTNERDrew ScheberleSVP, Education Talent DevelopmentPhyllis Snodgrass, IOMSVP, Investor Relations
23CHAIRMAN’S ADVISORY BOARD360training.com, Inc. Google Inc. National OilWell VarcoAmerican Airlines Inc. Grant Thornton LLP PolycomAustin Resource Recovery HendlerLaw, P.C. Protect AmericaChaotic Moon Studios Hillcrest Bank Sam’s Club (4 Locations)Evernote Corp Hospital Housekeeping Systems, LTD Shaw GroupEZCORP Littlefield CorporationGolfsmith International, Inc. Market AwarenessPRESIDENT’S ADVISORY BOARDAcumen FÖDA Studio Onestar FoundationAllure Energy Franklin Covey P. Terry’s Burger Stand - North LamarAltera Corporation Gensler Paragon Printing MailingAltius Education Greater Austin Allergy, Asthma Paramount and State TheatresAmerican Party Rental Immunology Pedernales Electric Cooperative, Inc.Austin Immediate Care Green Host It Performing Arts Programs, Inc.Austin Resource Center for Independent Habitat Suites Hotel Powell Financial PartnersLiving HealthTronics Provident CrossingsAustin Restaurant Week Henslee Schwartz LLP Quality Inn Suites-ManorAustin Watch and Jewerly Hyatt Place Austin Arboretum RedRocAvail Design Group Idea Public Schools Resort Lifestyle CommunitiesAyasdi, Inc. Image Microsystems, Inc. Rooted in AustinBest Western Inn Suites Insurance Network of America - Round Roya Johnson - Keller Williams RealtyBIOO Scientific Rock Sebesta Blomberg and Associates, Inc.BJ’s Restaurant Brewhouse International Studies Abroad Sector Supply LC(2 Locations) ITRenew Security National MortgageBridgeOne Global Solutions Keller Williams Realty Lake Travis - Lauri McNevin Senior Care Centers at Onion CreekBrown Hand Center Kinnarps USA South Texas Money ManagementCartridge World Kinnser Software Strasburger Price, LLPCentral Texas Rehabilitation Hospital Lakeline Oaks Adult Living Community SunPower CorporationCharlie Bravo Aviation Leadership Worth Following, LLC The BlackStone GroupChesapeake Energy Corporation LegalZoom The Carlson Law Firm, P.C.Coal Vines Link Coworking The Retreat at North BluffCoats Rose LNV, Inc. The Society for Financial AwarenessEFIGS Localization- Multicultural (SOFA)Business Solutions Longhorn Steakhouse TRAVELHOST Austin MagazineElectric Transmission Texas, LLC Malaspina Healthcare Consulting Turn Up GroupEnfatico Murphy Business and Financial Corporation Ultra ElectronicsEnoch Kever PLLC NoackLittle Architecture Interiors Vu TelepresenceETS-Lindgren (EMC Test Systems) Noble Insurance Waggener EdstromExpress Employment Professionals Northwestern Mutual Financial Network Westminster ManorExpress Employment Professionals -(South) Nothing Bundt Cakes Whale Shark Media, Inc.