Presentation on Houston's economy by Bob Harvey, President & CEO of the Greater Houston Partnership.

1. Houston:
The Next Great Global City
Bob Harvey
President and CEO
Greater Houston Partnership

2. Greater Houston Partnership
Houston’s Leading Business Organization
Public Policy
Economic Development
+
International Trade and
Investment
Regional
Consensus Builder

3. GHP Service Area
Ten County Houston Region

4. A shallow recession for Houston
-3.3%
-4.2%
-4.5% -4.6%
-5.1% -5.2%
-5.7%
-6.2%
-6.5%
-7.4%
-7.8% -7.8% -7.8%
-8.2%
-9.7%
-10.2%
-11.2%
-12.4%
-12.9% -13.2%
DC
Boston
Houston
New York
Dallas
Philadelphia
Baltimore
St. Louis
Minneapolis
Chicago
San Diego
Seattle
Atlanta
San Francisco
Los Angeles
Miami
Tampa
Riverside
Phoenix
Houston '82-'87
* Excludes Detroit
% Jobs Lost During Recession
20 Largest U.S. Metro Areas*
Source: U.S. Bureau of Labor Statistics

5. Steady job growth
Total Nonfarm Payroll (Not Seasonally Adjusted)
Houston Metro Area, '04 - '14
2.9
2.8
2.7
2.6
2.5
2.4
2.3
2.2
Jan '04 Jan '05 Jan '06 Jan '07 Jan '08 Jan '09 Jan '10 Jan '11 Jan '12 Jan '13 Jan '14
Employment (Millions)
Source: Texas Workforce Commission

6. Outpacing the nation
Percent of jobs recovered through August ’13
45.5%
41.5%
39.1%
73.5%
70.8%
66.5%
97.5%
125.3%
161.2%
143.8%
203.9%
Houston
Dallas
Washington
Boston
New York
Atlanta
San Francisco
Chicago
Philadelphia
Miami
Los Angeles
Source: U.S. Bureau of Labor Statistics
Seasonally unadjusted
100%
Houston vs. Top 10 Metros

7. Key Economic Indicators
400
350
300
250
200
150
Vehicle Sales (000s)
12-Month Total, Metro Houston
'04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14
Source: TexAuto Facts Report by InfoNation
7000
6000
5000
4000
3000
2000
1000
100
90
80
70
60
50
40
Value of Building Permits ($ Millions)
Metro Houston
Home Sales (000s)
12-Month Total, Metro Houston
'04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14
Source: Houston Association of REALTORS®
500
450
400
350
300
250
Sales Tax Collections ($ Millions)
City of Houston, ’04 Constant Dollars
'04 '05 '06 '07 '08 '09 '10 '11 '12 '13*
Source: Texas State Comptroller * Projected
0
'04 '05 '06 '07 '08 '09 '10 '11 '12 '13*
Source: City of Houston * Projected

8. Key Economic Indicators - Energy
2,500
2,000
1,500
1,000
500
0
'04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14
Source: Baker Hughes
U.S. Rig Count
Monthly Average
800
700
600
500
400
300
200
100
160
140
120
100
80
60
40
20
0
Texas Crude Oil Production
Barrels (000s)
Spot Price, West Texas Intermediate
Monthly Average, $/BBL
'04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14
Source: U.S. Energy Information Administration
0
'04 '05 '06 '07 '08 '09 '10 '11 '12 '13*
Source: Texas Railroad Commission * Projected
14
12
10
8
6
4
2
0
Spot Price, Henry Hub Natural Gas
Monthly Average, $/BBL
'04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14
Source: U.S. Energy Information Administration

9. Employment Trends
15.0%
10.0%
5.0%
0.0%
-5.0%
-10.0%
-15.0%
12-Month Growth Rate
Mining and Manufacturing Secondary Sectors
Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14
Source: GHP calculations based on Texas Workforce Commission data

10. Above average job growth
Metro Houston Employment (000s)
-10.4
17.7
43.4
52.9 51.8 52.4
105.2
90.8
17.4
59.0
3.6
-3.2
-11.4
37.5
89.2
105.8
88.8
19.5
-107.4
47.4
81.2
105.7
80.7 76.0
'91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12
August '12 - August '13
GHP Forecast for '13
Average = 42.6
Source: U.S. Bureau of Labor Statistics

11. Houston:
The Next Great Global City

12. Seven Emerging Themes
• Education
• Transportation Infrastructure
• Quality of Life Issues
• Local Government Issues
• Healthcare Access and Affordability
• Economic Drivers Beyond Energy
• The New Face of Houston

13. Houston:
The Next Great Global City
Bob Harvey
President and CEO
Greater Houston Partnership