Zapata, Texas - Economic Outlook April 2012

Zapata County Economic Profile Maricia Perez Rodriguez, MBA

Zapata Economic Development Corp.

April 2012

•Economic Inventory

•Population Characteristics

•Labor Force Characteristics

•Land Values

•Community Attitudes

•Quality of Life

•Retail Leakage Analysis

Outline

Economic Inventory Employment

• Increased 20% over the past year

• Increased 28% over the past 5 years

• Construction and Mining Sectors with greatest growth

Unemployment • 2011 – 8.5% / State Average – 7.9%

• Increased 5.6% from 2007 to 2010

• Began to drop in 2011

R² = 0.4597

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

2006 2007 2008 2009 2010 2011 2012

Economic Inventory Wages

• Home care aides most in demand

• Education field most in demand for bachelor’s degree or above

# of Firms / Size

• Decreased 1% over past 5 years

• Mining Sector greatest LQ

Natural Resources andMining

Construction

Manufacturing

Trade, Transportation andUtilities

Information

Financial Activities

• Incomes fall substantially

below TX averages

• Per Capita Income 2010

$12,518 (48% less than TX)

• Income levels increased

around 20% in last 10 years

• Of 2010 population, 38%

below poverty level

Economic Inventory Area Income

• Gross sales increasing

• Subject to great volatility and seasonal fluctuation

• 3rd Quarter historically has lowest sales

Economic Inventory Retail Sales

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

Gross Sales

Population • Increasing – More Slowly, 9% future growth

Age • Median Age – 28.4, predicted to increase

Race • Hispanic – 93%, White – 6%

Population Characteristics

9,279

12,182

14,018

15,262

7,500

8,500

9,500

10,500

11,500

12,500

13,500

14,500

15,500

16,500

1990 1995 2000 2005 2010 2015 2020

Year

Po

pu

lati

on

Labor Force Characteristics Participation Rates

• Steadily increased in past 5 years (3.7%)

Occupations • Mining – largest sector – 23% of total workforce

Education Attainment • Falls substantially below TX average

• 28% population less than 9th Grade education

• 31% at least H.S. Graduates (increased 13% from 2000)

• Greatest change in Associate Degreed (39% increase)

Location • Greater % of educational attainment

within 30 minutes of Zapata, TX.

Natural Resources

and Mining, 23.4%

Education and Health

Services, 19.9%

Trade, Transportat

ion and Utilities, 18.4%

Construction, 15.1%

Public Administration, 10.6%

Leisure and Hospitality,

6.1%

Land Values

• Property values quite low and varied

• Existing home appraised values steadily increasing • Past 5 years increased by 71% to average of $68K in 2011

• Great degree of value difference reflects the varying age,

housing condition, and presence of unimproved lots

• Greater density and better living standards is needed

• Further market analysis needed as well.

Community Attitudes Workforce

• Lack of qualified and skilled workforce

Education • Not prepared enough, dropout rate, language barriers, best talent leaves

Comprehensive Planning • Lack of comprehensive planning and policies/regulations to deal with

growth

Local Government • Lack of cooperation / unity

Economic Growth • Lack of retail and recreational venues

Environmental • Prevalent litter problems

Quality of Life Housing

• New housing leveled off in 2010, but expected to increase 31% by 2015

• Owner occupied housing will continue to be majority

• Within Zapata, TX, Siesta Shores most dense subdivision

• Median home values increased 71% to $63K in 2011

• Houses valued over $90K had greatest % change overall in 2010

• Houses valued between $175K - $200K increased by 1300%

• Greatest volume of new units were in the range of $125K - $150K

• Cash rent also increasing (51%) – median $317

Quality of Life Public Education System

• Spends just above state average per student

• Resources stretched as experience higher demand of children with educational obstacles (over 78% economically disadvantaged, 52% at risk, 17% LEP)

• Low college-readiness and college entrance rates, which significantly lag behind state averages (only 30% college ready and enter)

Quality of Life

Crime Rate • Relatively safe place to live

• Total crime rate significantly below state and border county averages

• Lowest violent crime rate of lower Rio Grande border counties

• Problem with property crime - increased 26% in past 5 years

0.0 1000.0 2000.0 3000.0 4000.0 5000.0

Violent Rate

Property Rate

Total Rate

Border

Texas

Zapata County

Quality of Life

Outdoor Recreational Opportunities • Fishing

• Hunting

• Birding

• Golfing

• Organized Sports

• Public Parks

• Historic Sightseeing

Retail Leakage Analysis

Total Retail Opportunity Gap of $93.5 million dollars! • Indicates Zapata not capturing full market share, and opportunities for

expansion or improvement exist

High Potential for New Establishments include: • Building Material and Supply Dealers

• Pharmacies & Drug Stores

• Specialty Food Stores

• Women’s Clothing Stores

Path Going Forward

Effective collaboration and engagement

Long-term planning and investment

Robust, diversified local economy

Call to Arms

Let’s Protect our Nest Egg.

Are you in?