A ra n sa s

S a n P a tr ic io

N u eces

Is the Corpus ChristiIs the Corpus ChristiArea Area ReachingReachingIts EconomicIts EconomicGoalGoal

Presented byPresented by

William H. FruthWilliam H. FruthPOLICOM CorporationPOLICOM Corporation

2740 SW Martin Downs Blvd.2740 SW Martin Downs Blvd.Palm City, FL 34990Palm City, FL 34990

772-781-5559772-781-5559fruth@policom.comfruth@policom.com

www.policom.comwww.policom.com

How a local How a local economy economy

works.works.

Primary or Primary or contributory contributory

industries industries import money.import money.

Consumptive or Consumptive or dependent industries dependent industries use and consume this use and consume this

money.money.

Growth in size Growth in size depends upon the depends upon the amount of money amount of money

flowing into the area. flowing into the area.

Growth in quality Growth in quality depends upon the depends upon the wage level of the wage level of the

primary industries.primary industries.

Characteristics of Primary Employers

Sell goods and services outside the Sell goods and services outside the economy, importing money to the area.economy, importing money to the area.

Geographic location influences operating Geographic location influences operating costs, thus profitability.costs, thus profitability.

Since their market is not local, they do not Since their market is not local, they do not have to be in an area to sell their product.have to be in an area to sell their product.

They will move when it is unprofitable to be They will move when it is unprofitable to be located in an area.located in an area.

Metropolitan Statistical Areas363

Micropolitan Statistical Areas577

Economic StrengthEconomic Strength

The long term tendency for The long term tendency for an area to consistently an area to consistently

grow in both grow in both size and quality.size and quality.

TEN STRONGEST TEN STRONGEST METROPOLITAN AREASMETROPOLITAN AREAS

11 Charlotte-Gastonia-Concord, NC-SCCharlotte-Gastonia-Concord, NC-SC22 Washington-Arlington-Alexandria, DC-VA-MDWashington-Arlington-Alexandria, DC-VA-MD33 San Diego-Carlsbad-San , CASan Diego-Carlsbad-San , CA44 Nashville-Davidson-Murfreesboro-Franklin, TNNashville-Davidson-Murfreesboro-Franklin, TN55 Sacramento-Arden-Arcade-Roseville, CASacramento-Arden-Arcade-Roseville, CA66 Phoenix-Mesa-Scottsdale, AZPhoenix-Mesa-Scottsdale, AZ77 Dallas-Fort Worth-Arlington, TXDallas-Fort Worth-Arlington, TX88 Houston-Sugar Land-Baytown, TXHouston-Sugar Land-Baytown, TX99 Salt Lake City, UTSalt Lake City, UT

1010 Las Vegas-Paradise, NVLas Vegas-Paradise, NV

TEN WEAKEST TEN WEAKEST METROPOLITAN AREASMETROPOLITAN AREAS

363363 Danville, ILDanville, IL362362 Pine Bluff, ARPine Bluff, AR361361 Danville, VADanville, VA360360 Pascagoula, MSPascagoula, MS359359 Abilene, TXAbilene, TX358358 Pocatello, IDPocatello, ID357357 Weirton-Steubenville, WV-OHWeirton-Steubenville, WV-OH356356 Gadsden, ALGadsden, AL355355 Muncie, INMuncie, IN354354 Springfield, OHSpringfield, OH

TEN STRONGEST TEN STRONGEST MICROPOLITAN AREASMICROPOLITAN AREAS

11 Hilton Head Island-Beaufort, SCHilton Head Island-Beaufort, SC22 Edwards, COEdwards, CO33 Concord, NHConcord, NH44 Lebanon, NH-VTLebanon, NH-VT55 Kahului-Wailuku, HIKahului-Wailuku, HI66 Durango, CODurango, CO77 Truckee-Grass Valley, CATruckee-Grass Valley, CA88 Bozeman, MTBozeman, MT99 East Stroudsburg, PAEast Stroudsburg, PA

1010 Gillette, WYGillette, WY

TEN WEAKEST TEN WEAKEST MICROPOLITAN AREASMICROPOLITAN AREAS577577 Tallulah, LATallulah, LA576576 Lamesa, TXLamesa, TX575575 Indianola, MSIndianola, MS574574 Jennings, LAJennings, LA573573 Silver City, NMSilver City, NM572572 Pecos, TXPecos, TX571571 Levelland, TXLevelland, TX570570 , AR, AR569569 Bogalusa, LABogalusa, LA568568 Pittsburg, KSPittsburg, KS

Texas Texas MetropolitanMetropolitanAreasAreas

A nd erson

A nd rew s

A ng elina

A ra nsas

A rche r

A rm s tro ng

A ta scosa

A us tin

B aile y

B an dera

B as trop

B ay lor

B ee

B ell

B exar

B lan co

B orden

B osqu e

B ow ie

B ra zo ria

B ra zo s

B re ws ter

B riscoe

B ro oks

B ro wn

B ur leson

B urnet

C aldw ell

C alho un

C allah an

C am eron

C am p

C arson

C ass

C as tro

C ham b ers

C herokee

C hildress

C lay

C ochra n

C oke

C olem a n

C ollin

C olling sw or th

C olorad o

C om al

C om an ch e

C oncho

C ooke

C oryell

C ottle

C ran e

C rockett

C rosby

C ulbe rson

D allam

D allasD aw so n

D eaf S m ith

D elta

D enton

D e W itt

D icken s

D im m it

D onle y

D uval

E as tland

E c to r

E dw ards

E llis

E l Pa so

E ra th

Fa lls

Fa nnin

Fa ye tte

F isher

F loydFo ard

Fo rt B e nd

Frank lin

Frees tone

Fr io

Ga ines

Ga lve stonGa lve ston

Ga rza

G ille sp ie

G la sscock

Go liad

Go nzales

Gray

Grayso n

Greg g

Gr im es

Gu ad alup e

H ale

H all

H am ilton

H ans ford

H ard em a n

H ard in

H arr is

H arr iso n

H artley

H aske ll

H ays

H em ph ill

H end erso n

H idalg o

H ill

H ockle y

H ood

H opk ins

H ous ton

H ow ard

H udspe th

H unt

H utch inson

Irion

Jack

Jackson

Jasper

Jeff Da v is

Jeffe rson

J im H og g

J imW e lls

John so n

Jone s

K arnes

K au fm a n

K en dall

K en edy

K en t

K er r

K im ble

K ing

K inn ey

K leb erg

K no xLa m ar

La m b

La m pasas

La S a lle

La va ca

Le e

Le on

Lib er ty

Lim e sto ne

Lip scom b

Live Oa k

Lla no

Lo vin g

Lu bb ock

Lynn

M cCu lloch

M cLen na n

M cM ullen

M ad iso n

M ar ion

M ar t in

M ason

M atag orda

M aver ick

M ed ina

M en ard

M idla nd

M ilam

M ills

M itch ell

M on ta gu e

M on tgom e ry

M oo re

M orris

M otley

N acogd oche s

N avarro

N ew to n

N olan

N ueces

Ochiltre e

O ld ham

Oran ge

P alo P into

P an ola

P arke r

P arm er

P ecos P olk

P otter

P re sid io

R ains

R and all

R eag an

R eal

R ed R ive r

R eeves

R efugio

R obe rts

R obe rtso n

R ockw all

R unn els

R usk

S ab ine

S anA ug us tin e

S anJac into

S an P a tr icio

S an S a ba

S chleiche r

S curryS ha ck leford

S he lby

S he rm a n

S m ith

S om e rvell

Star r

Step hen s

Ster ling

Ston ew all

S utton

S wishe r

Tarran t

Tay lor

Terrell

Terry Th rockm orto n Titu s

TomGree n

Trav is

Trinity

Ty ler

U psh ur

U pton

U va lde

Val Verde

VanZa ndt

V ictor ia

W alker

W alle r

W ard

W ashin gton

W e bb

W har to n

W hee ler

W ich ita

W ilb arger

W illa cy

W illia m so n

W ilson

W in k le r

W ise

W o od

Yoakum Youn g

Za pata

Za va la

A bilene , T X

A m arillo , T X

A ustin -R ou nd R ock , T X B eaum ont -P ort A rthu r, T X

B ro w nsv ille -H arlingen , T X

C orpus C hris ti, TX

D allas -F ort W orth -A rling ton , T X

E l P aso , T X

L aredo , T X

L ongv iew, T X

L ubbo ck , T X

M id land , T X

O dessa , T X

S an A ng e lo , T X

S an A nton io , T X

S herm an -D en ison , T X

Tyle r, T X

Vic to ria , TX

W aco , T X

W ich ita Fa lls, T X

C o lle g e S ta tio n - B ry a n , T X

K ille e n - Te m p le - F o rt H o o d , T X

Texarkana , T X - Texarkana , A R

H o u sto n -S u g ar L a n d-B ay to w n , T X

M cA llen -E d in b urg -M iss io n , T X

Texas Metropolitan AreasTexas Metropolitan Areas

Metropolitan Areas 2008

Dallas-Fort Worth-Arlington, TX (MSA) 7Houston-Sugar Land-Baytown, TX (MSA) 8Austin-Round Rock, TX (MSA) 39San Antonio, TX (MSA) 43Killeen-Temple-Fort Hood, TX (MSA) 125Corpus Christi, TX (MSA) 153McAllen-Edinburg-Mission, TX (MSA) 191Laredo, TX (MSA) 196Tyler, TX (MSA) 208El Paso, TX (MSA) 219

Texas Metropolitan AreasTexas Metropolitan AreasMetropolitan Areas 2008

College Station-Bryan, TX (MSA) 225

Longview, TX (MSA) 230

Waco, TX (MSA) 243

Texarkana, TX-Texarkana, AR (MSA) 251

Corpus Christi, TX (MSA) 253

Victoria, TX (MSA) 269

Wichita Falls, TX (MSA) 274

Midland, TX (MSA) 281

Beaumont-Port Arthur, TX (MSA) 292

Brownsville-Harlingen, TX (MSA) 308

Texas Metropolitan AreasTexas Metropolitan Areas

Metropolitan Areas 2008

Odessa, TX (MSA) 312Sherman-Denison, TX (MSA) 331Lubbock, TX (MSA) 349San Angelo, TX (MSA) 352Abilene, TX (MSA) 359

Corpus ChristiCorpus ChristiEconomyEconomy

Corpus ChristiCorpus ChristiEconomic Strength RankingsEconomic Strength Rankings

Economic StrengthEconomic Strength 20042004 20052005 20062006 20072007 20082008

Corpus ChristiCorpus Christi 244244 236236 193193 161161 153153

Brownsville-HarlingenBrownsville-Harlingen 292292 331331 300300 283283 308308

LaredoLaredo 221221 219219 232232 211211 196196

McAllen-Edinburg-MissionMcAllen-Edinburg-Mission 194194 172172 184184 185185 191191

VictoriaVictoria 314314 341341 295295 276276 269269

Corpus ChristiCorpus Christi 20062006Growth RankingGrowth Ranking 20022002363 Metropolitan Areas363 Metropolitan Areas

PopulationPopulation 225225EmploymentEmployment 172172EarningsEarnings 7575Annual WagesAnnual Wages 2929Number of NF ProprietorsNumber of NF Proprietors 238238Per Capita Personal IncomePer Capita Personal Income 2121Per Capita Government Per Capita Government TransfersTransfers 4747

Actual AmountActual Amount 20062006 RankRank363 Metropolitan Areas363 Metropolitan Areas

PopulationPopulation 413,365413,365 114114Annual WagesAnnual Wages 41,93441,934 131131Per Capita Personal IncomePer Capita Personal Income 31,46431,464 191191Per Capita Government Per Capita Government TransfersTransfers 5,6835,683 134134Per Capita MedicarePer Capita Medicare 1,4301,430 106106Per Capita Retire TransPer Capita Retire Trans 1,6691,669 256256Per Capita Welfare - ActualPer Capita Welfare - Actual 756756 3838Per Capita MedicaidPer Capita Medicaid 1,2351,235 8989

PrimaryIndustries

% of Contribution

Primary Industries - % of Contribution

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Man

ufa

ctu

rin

g

Min

ing

Mil

itar

y

Con

stru

ctio

n

Fed

eral

Sta

te G

ov

Wel

fare

-Med

Ret

ire-

Med

Far

m

Res

tau

ran

t &

Hot

el

Man

agem

ent

For

estr

y

Corpus Christi

Employment Factored

1000

1200

1400

1600

1800

2000

2200

2400

2600

2800

3000

77 81 85 89 93 97 01 05

1977-2006

Corpus Christi STR MET WK MET

CPI Earnings Factored

800

1300

1800

2300

2800

3300

77 81 85 89 93 97 01 05

1977-2006

Corpus Christi STR MET WK MET

CPI Factored Wages

800

900

1000

1100

1200

1300

77 81 85 89 93 97 01 05

1977-2006

Corpus Christi STR MET WK MET

How To Improve a How To Improve a Local EconomyLocal Economy

Create more primary Create more primary industry jobs which pay a industry jobs which pay a wage higher than the area wage higher than the area

average.average.

EconomicEconomicDevelopmentDevelopment

Economic Economic DevelopmentDevelopment

The process which improves The process which improves the standard of living for the the standard of living for the people who live and work in people who live and work in

an area.an area.

Existing IndustryExisting IndustryRecruitmentRecruitmentStart-UpStart-Up

Economic Economic Development Development Goal Setting Goal Setting

StudyStudy20052005

ProjectionsProjectionsandandGoalGoal

Factored CPI Earnings

900

1100

1300

1500

1700

1900

2100

2300

2500

2700

2900

74 77 80 83 86 89 92 95 98 01 04 07 10 13 16 19 22 25Corpus Christi MSA

1974-2025

History Projections GO AL

CPI-WAGES Factored

900

925

950

975

1000

1025

1050

1075

1100

1125

1150

74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 22 24 26Corpus Christi MSA

1974-2025

History Projections GO AL

Annual Annual MilestonesMilestones

New New Area % OFPrimary Job Avg. Area

Year Jobs Wage Wage Avg.

2006 180 44,558 32,904 135%2007 339 46,410 33,796 137%2008 497 47,798 34,830 137%2009 510 48,823 35,897 136%2010 523 49,875 36,998 135%2011 536 50,954 38,135 134%2012 570 52,951 39,357 135%2013 605 55,038 40,668 135%2014 622 56,431 42,025 134%2015 639 57,862 43,427 133%

PerformancePerformanceEvaluationEvaluation

REGION 2005

NAICS Description Jobs Earnings Wages

Total - All Workers 168,429 5,553,965,194 32,975

Total - Private Sector 136,190 4,377,442,245 32,142

Primary Industries 21,158 1,132,877,618 53,544

Mining 2,884 161,136,674 55,873

Utilities 576 38,414,989 66,693

Construction

Manufacturing 10,350 594,192,535 57,409

Wholesale Trade 2,975 143,624,666 48,275

Retail Trade

Transportation and Warehousing 1,373 62,703,822 45,676

Information 1,087 37,983,745 34,939

Finance and Insurance 751 35,694,640 47,529

Professional, Scientific, and Technical Services 1,000 49,581,060 49,595

Management of Companies and Enterprises 162 9,545,487 58,923

REGION 2006

NAICS Description Jobs Earnings Wages Varience Wage

Prim

Total - All Workers 171,641 6,075,856,844 35,399 3,212 Jobs

Total - Private Sector 139,078 4,831,635,161 34,740 2,888 Gained

Primary Industries 21,850 1,277,379,575 58,462 692 60,503

Mining 2,829 187,186,972 66,167 -55 Percent

Utilities 559 40,757,647 72,960 -17 of area

Construction average

Manufacturing 11,108 690,303,271 62,146 758 171%

Wholesale Trade 2,963 148,767,931 50,202 -12

Retail Trade Wage

Transportation and Warehousing 1,431 70,167,429 49,020 59 Prim

Information 941 31,092,851 33,059 -147 Jobs

Finance and Insurance 721 36,418,879 50,512 -30 LostProfessional, Scientific, and Technical Services 1,109 61,087,326 55,073 109 45,482

Management of Companies and Enterprises 189 11,597,270 61,361 27

REGION 2007

NAICS Description Jobs Earnings Wages Varience Wage

Prim

Total - All Workers 175,382 6,511,217,572 37,126 3,741 Jobs

Total - Private Sector 142,692 5,197,265,128 36,423 3,614 Gained

Primary Industries 22,464 1,352,423,695 60,204 614 61,689

Agriculture, Forestry, Fishing and Hunting

Mining 3,218 225,160,714 69,969 389 Percent

Utilities 691 50,772,383 73,474 132 of area

Construction 0 average

Manufacturing 10,854 687,090,579 63,306 -254 166%

Wholesale Trade 3,134 162,466,376 51,837 171

Retail Trade 31 862,697 27,829 31 Wage

Transportation and Warehousing 1,558 78,541,759 50,409 127 Prim

Information 948 30,591,513 32,264 8 Jobs

Finance and Insurance 664 37,019,254 55,752 -57 LostProfessional, Scientific, and Technical Services 1,183 66,657,574 56,338 74 62,122

Management of Companies and Enterprises 183 13,260,847 72,464 -6

Annual Annual MilestonesMilestones

Corpus Christi MSAPrimary Net Gain Variance New Variance

Job for from Milestone Job fromYear Milestone Year Milestone Cumul Wage Wage Milestone

2006 180 692 511 511 32,904 60,503 27,6002007 339 614 275 786 33,796 61,689 27,893

Economic ImpactEconomic ImpactEconomic Impact (Minimum)Economic Impact (Minimum)

New Primary JobsNew Primary Jobs 1,3061,306Additional JobsAdditional Jobs 2,2202,220Total JobsTotal Jobs 3,5263,526Community PayrollsCommunity Payrolls 114,928,000114,928,000Taxable Retail SalesTaxable Retail Sales 169,780,000169,780,000Local Government TaxesLocal Government Taxes 11,492,80011,492,800Economic Impact (Transactions)Economic Impact (Transactions) 718,300,000718,300,000

Much More Much More AggressiveAggressive

GoalGoal

Current Goal Aggressive GoalNew New New

Primary Job NEW JobYear Jobs Wage GOAL Wage

2008 497 47,798 1,058 48,3102009 510 48,823 1,175 50,4152010 523 49,875 1,260 53,9952011 536 50,954 1,385 57,1472012 570 52,951 1,641 60,2832013 605 55,038 1,752 63,9062014 622 56,431 1,914 67,1322015 639 57,862 2,066 70,9712016 656 59,331 1,089 74,942

Factored CPI Earnings

900

1100

1300

1500

1700

1900

2100

2300

2500

2700

2900

74 77 80 83 86 89 92 95 98 01 04 07 10 13 16 19 22 25Corpus Christi MSA

STR MSA History Projections GOAL NEW GOAL

CPI-WAGES Factored

900

950

1000

1050

1100

1150

1200

74 77 80 83 86 89 92 95 98 01 04 07 10 13 16 19 22 25Corpus Christi MSA

STR MSA History Projections GOAL NEW GOAL

AmarilloAmarilloPrimaryPrimary AverageAverage

2006 and 20072006 and 2007 JobsJobs WageWage

Corpus ChristiCorpus Christi 1,3061,306 61,06161,061AmarilloAmarillo 2,0982,098 50,24250,242

Corpus Christi can Corpus Christi can become the next become the next great economy in great economy in

Texas.Texas.