Post on 06-Jul-2020
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Small Business Study: A Profile of Small
Businesses in San Antonio Metro Area
Prepared by
Maya Halebic, M.B.A.
Senior Economist
Steve Nivin, Ph.D.
Director & Chief Economist
February, 2012
The SABÉR Research Institute is an alliance between St. Mary’s University and
the San Antonio Hispanic Chamber of Commerce.
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Executive Summary
This report, prepared by the SABÉR Research Institute, gives an in-depth analysis of the
importance of small business firms in the San Antonio Metropolitan Statistical Area (MSA) and
provides a summary of the demographic and economic characteristics of selected industries in
the area. Major industry employers include Aerospace, Health Care & Bioscience, Hospitality,
Information Technology & Security, New Energy, Retail Trade, Oil & Gas, and Construction.
Hospitality was the leading industry employer in the San Antonio metropolitan area, employing
an estimated total of 80,469 workers in 2011. The industry with the most small business
establishments is Retail Trade, with a total of 8,585 firms.
The following are key findings of the study:
According to the U.S. Census Bureau, small business establishments with less than 100
employees represent 97% of all employer firms both in the state of Texas and in the San
Antonio MSA.
Based on the cost of the state tax system on small businesses, Texas was ranked as one of
the best states in 2011.
The top three industries in the state of Texas reporting the greatest percent increases in
small business firms over the period 1998-2009 are Finance and Insurance (32.87%),
followed by Accommodation and Food Services (28.66%), and Health Care and Social
Assistance (28.31%).
The leading three industries in the San Antonio MSA with the most significant relative
increases in establishments from 1998 to 2009 include Real Estate, Rental and Leasing
(41.17%), Accommodation and Food Services (39.15%), and Health Care and Social
Assistance (37.72%).
Small business owners report the following regulations as the main challenges creating
the most difficulty for their businesses: access to capital, tax, health insurance, and
industry-specific licensing and permitting.
With an estimated total of 204 small business establishments, the Aerospace industry in
the San Antonio metropolitan area employed 2,141 workers in 2011 and generated
roughly $466.5 million in annual sales revenue.
2
Although there was a slight dip in growth between 2008 and 2010, Texas was the only
U.S. state that added aerospace manufacturing jobs. From 2000 to 2010, the Aerospace
industry in Texas grew by 75%, making the state one of the top three states in aerospace
manufacturing.
In 2011, Health Care & Bioscience industry was the #3 industry employer in the San
Antonio MSA, employing a total of 52,361 workers. Furthermore, the industry generated
an annual sales volume of $8.4 billion and had over 6,000 small business establishments.
One of every six San Antonio employees works in the Health Care & Bioscience
industry. From 1999 to 2009, the number of net new jobs in the industry increased by
35%.
The Hospitality industry was the #1 employer in the San Antonio metropolitan area in
2011, employing well over 80,000 workers. With an estimated 5,897 small business
establishments, the industry generated a total of $4.6 billion in annual sales revenue.
From 1998 to 2008, employment in the Hospitality industry in the San Antonio MSA
increased by 26%. The restaurant sector remained the dominant sector throughout the
decade.
In 2008, the Hospitality industry employed one out of every eight workers in the San
Antonio MSA.
With a total of 787 small business firms, the Information Technology & Security industry
employed an estimated 5,327 workers in 2011 in the San Antonio metropolitan area and
generated $1.6 billion in annual sales. Between 1998 and 2008, the economic impact of
the industry grew by 100%, from $4 billion in 1998 to $8 billion in 2008.
In 2008, the state of Texas ranked #2 nationwide in the number of high-tech workers, in
high-tech employment growth, in the size of high-tech payroll, and in the number of
high-tech establishments.
The New Energy industry in the San Antonio MSA employed 735 workers in 2011, had a
total of 6,985 small business establishments, and generated an estimated $2.1 billion in
sales.
In 2009, Texas was ranked #2 nationwide in the number of renewable energy jobs, with
15% growth from 1998 to 2007. Between now and 2035, the Energy Information
3
Administration (EIA) estimates the strongest growth in fuel use to occur in renewable
fuels used to generate electricity and to power vehicles.
The Retail Trade industry was the #2 employer in the San Antonio metropolitan area in
2011, employing an estimated total of 59,596 workers. The industry had 8,585 small
business firms and generated a total of $16.6 billion in sales revenue.
Similar to the Retail Trade industry in the San Antonio MSA, the industry is also the #2
employer statewide. Between 1998 and 2009, the total number of employees in Texas
and in the San Antonio metropolitan area grew by 18% and 29%, respectively. Since
December 2009, Retail Trade has added 1,500 new jobs and has gained 2,220 jobs in the
San Antonio MSA. This is equivalent to an annual growth rate of 2.2%, which is mainly
a result of seasonal hiring.
In 2011, the Oil & Gas industry in the San Antonio MSA employed a total of 428
workers, had over 3,500 small business establishments, and generated an estimated $1.2
billion in sales.
According to the Texas Petro Index (TPI), employment in the state’s Oil & Gas industry
has rebounded to its pre-recession levels. In June 2011, Texas employed an estimated
224,200 workers in the industry; this is more than the 223,200 at the height of the last
energy boom in October 2008 and almost 15% more than in June of the previous year.
During 2011, the Oil & Gas industry in Texas added more than 28,000 jobs; this is
nearly 13% of all jobs added to the state’s economy.
A total of 4,016 small businesses in the Construction industry employed over 28,000
workers in the San Antonio MSA in 2011 and generated an estimated total of $6.7 billion
in sales.
While the state’s Construction industry lost more than 17% of its workforce during the
recession, the industry has recovered nearly one-third of all the jobs lost since the
industry started growing again in the middle of 2010. Most of the jobs added have been
in heavy and civil construction, and utility construction. While most sectors of the
industry have grown, highway, street, and bridge construction have continued to see
declines.
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Introduction
The purpose of the present study is to discuss the importance of small businesses in the state of
Texas as well as in the San Antonio MSA. In other words, this study intends to depict the
demographic characteristics of small businesses and their economic contributions to the state and
to the San Antonio MSA. This study is intended to serve as an informational reference, a
planning resource, and a catalyst for discussion.
Methodology
This study provides a profile of small business establishments in the San Antonio MSA. The San
Antonio MSA is an eight-county region that includes Bexar, Guadalupe, Comal, Medina,
Atascosa, Wilson, Kendall, and Bandera counties. To discuss the importance of small business
firms, describe their demographic characteristics, and point out the key opportunities and
challenges such firms are facing, existing literature on small businesses at the local, state, and
national level was reviewed. To define small business establishments, the Governor’s office
definition of small businesses was used, which focuses on firms with less than 100 employees.
Data provided by the U.S. Census Bureau were used to summarize the demographic
characteristics of small business firms for the state of Texas and the San Antonio MSA for the
period 1998-2008. Furthermore, the U.S. Census Bureau data were used to show the growth
trends of small businesses for the top ten industries in Texas and in the San Antonio metro area
between 1998 and 2009. Profiles of small business establishments for selected industries in the
San Antonio MSA were created using 2011 data provided by InfoUSA. NAICS codes were used
to create an industry cluster for each industry. The selection of industries for which industry
clusters were created was jointly agreed upon by the research team of the SABÉR Research
Institute and the City of San Antonio, International and Economic Development Department.
Those industries include Aerospace, Health Care & Bioscience, Hospitality, Information
Technology & Security, New Energy, Retail Trade, Oil & Gas, and Construction.
Importance of Small Businesses
Small businesses are an integral part of the regional social and economic landscape. Research
shows that small businesses and entrepreneurship respectively play a vital role in innovation,
5
regional economic development, and the pursuit of new markets.1 In fact, Glaeser and Kerr of
Harvard Business School show that regional economic growth is highly correlated with the
presence of many small, entrepreneurial employers.2 According to the U.S. Census Bureau, small
businesses with less than 100 employees represent 97% of all employer firms in Texas as well as
in the metro area of San Antonio. Small businesses are the key drivers of job creation statewide
and contribute positively to the economic climate that helps attract employers of all sizes to the
state3. In April 2011, the Small Business and Entrepreneurship Council ranked Texas as one the
best states for small businesses in their Business Tax Index 2011: Best to Worst State Tax
Systems for Entrepreneurship and Small Business report. Texas ranked second in the index based
on the cost of the state tax system on small businesses4.
Definition and Characteristics of Small Businesses In Texas and San Antonio MSA
In trying to gain a better understanding of small businesses’ impact and their contributions to the
regional economy, the present study uses a Governor’s office definition of small businesses
which focuses on firms with less than 100 employees who tend to be associated with the
entrepreneurial spirit of the American economy.5 Using this definition for the state of Texas, the
data show that small businesses with less than 100 employees hired close to 3 million workers in
2008 (Table 1). These small businesses numbered 508,193 and represented approximately 97%
of the 522,336 private firms for that year and their roughly 3 million jobs accounted for 32% of
the 9.2 million private, non-farm employment in the state.6
1 “Looking Ahead: Opportunities and Challenges for Entrepreneurship and Small Business Owners,” by Chad
Moutray, in Small Business Research Summary, Small Business Administration, Office of Advocacy, October 2008. 2 “The Secret to Job Growth: Think Small,” by Edward L. Glaeser and William R. Kerr, in Harvard Business
Review, July 2010. 3 “Small Businesses Represent True Vibrancy of Texas Economy,” Governor Rick Perry, NFIB Texas Small
Business Day Luncheon, March 2, 2011, http://governor.state.tx.us/news/speech/15769 4 “Business Tax Index 2011: Best to Worst State Tax Systems for Entrepreneurship and Small Business,” by
Raymond J. Keating, in Small Business and Entrepreneurship Council, April 2011. 5 Taken from the Office of the Governor Web site http://governor.state.tx.us/ecodev/business_resources/sba on May
11, 2011. 6 The U.S. Census Bureau through the Statistics of U.S. Businesses (SUSB) provides national, state, and
metropolitan data on enterprises by size and industry. An enterprise is a business with one or more establishments
under common ownership or control. For the purposes of the present study, “a firm is defined as part of an enterprise
tabulated in a particular industry, state, or metropolitan area.” Taken from
http://www.census.gov/econ/susb/definitions.html#firm on May 11, 2011.
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Table 1: Texas Small Business Facts (1998-2008)
Number of Establishments 2008 2003 1998
Number of employer firms with less than 100
employees 508,193 471,827 451,410
Total number of employer firms 522,336 483,945 462,875
Employment 2008 2003 1998
Employment by firms with less than 100
employees 2,954,925 2,738,283 2,618,469
Total employment 9,231,955 8,051,148 7,570,820
Source: U.S. Census Bureau, County Business Patterns 1998-2008; U.S. Census Bureau, Statistics of U.S. Businesses: 2008, All Industries, Texas
Figure 1 shows the number and percentage of small business establishments in Texas in 2008 as
broken down by employee size range. According to the U.S. Census Bureau, a majority (51%) of
small businesses in Texas employ less than five employees.
Figure 1: Small Business Establishments
Source: U.S. Census Bureau, County Business Patterns 2008
The number of small firms in Texas with less than 100 employees increased by 12.58% since
1998 with an annual average percent change in growth of 1.19% during the period 1998-2008.
Employment by firms with less than 100 employees increased by 12.85% since 1998. During the
period 1998-2008, employment by firms with less than 100 employees increased by 1.22%
annually.
266,532
(51.03%)
103,124
(19.74%)
70,470
(13.49%)
50,778
(9.72%)
17,289
(3.31%)
Number and Percentage of Establishments by
Employee Size Range in Texas, 2008
1-4
5-9
10-19
20-49
50-99
7
Appendix I shows historical data on businesses in Texas broken down by employment size of the
enterprise. All data are for the period 1998-2008 and were taken from the U.S. Census Bureau,
County Business Patterns7.
Table 2 shows a summary of the data for the number of small business establishments as well as
employment for the San Antonio Metropolitan Statistical Area. Small businesses with less than
100 employees hired over 200,000 workers in 2008. These small firms accounted for roughly
40,000 and represented 97% of the 40,535 private firms for that year. Approximately 227,000
jobs accounted for 31% of the 735,867 private, non-farm employment in the San Antonio MSA.
Table 2: San Antonio Metropolitan Statistical Area (MSA) Small Business Facts (1998-2008)
Number of Establishments 2008 2003 1998
Number of employer firms with less than 100
employees 39,403 36,051 32,206
Total number of employer firms 40,535 37,015 33,047
Employment 2008 2003 1998
Employment by firms with less than 100 employees 226,502 207,475 182,812
Total employment 735,867 646,994 572,897
Source: U.S. Census Bureau, County Business Patterns 1998-2008; U.S. Census Bureau, Statistics of U.S. Businesses: 2008, 2008 Annual
Tabulations, Metropolitan Statistical Areas (MSA’s)
Figure 2 shows the number and percentage of establishments by employee size range in the San
Antonio MSA in 2008. According to the U.S. Census Bureau, almost 50% of all small business
establishments employ less than five employees.
Figure 2: Small Business Establishments
Source: U.S. Census Bureau, County Business Patterns 2008
7 http://www.census.gov/econ/cbp/index.html
20,213
(49.87%)8,113
(20.01%)
5,617
(13.86%)
3,983
(9.83%)
1,477
(3.64%)
Number and Percentage of Establishments by Employee
Size Range in San Antonio MSA, 2008
1-4
5-9
10-19
20-49
50-99
8
The number of small firms with less than 100 employees increased by 22.35% since 1998 with
an annual average percent change in growth of 2.04% during the period 1998-2008. Employment
by firms with less than 100 employees increased by 23.90% since 1998. During the period 1998-
2008, employment by firms with less than 100 employees increased by 2.17% annually.
Appendix II shows historical data on businesses in the San Antonio MSA broken down by
employment size of the enterprise. All data are for the period 1998-2008 and were taken from the
U.S. Census Bureau, County Business Patterns.7
According to InfoUSA, there were an estimated 54,944 small businesses in the San Antonio
metropolitan area employing approximately 446,207 workers. Figure 3 shows a distribution of
total employment and number of establishments by selected industries. The top three industries
in terms of employment are Hospitality employing a total of 80,469 workers, followed by Retail
Trade (59,596), and Health Care & Bioscience (52,361). While Health Care and Bioscience
combined employ 52,361 workers, individually the ratio of their employment is approximately
80:20; that is, Health Care industry employs about 80% of the total workforce in the Health
Care & Bioscience industry (or 40,515 workers), and Bioscience employs roughly 20% or
11,846 workers.
9
Figure 3: Employment & Number of Establishments by Selected Industries in the San Antonio MSA, 2011
Note: Other includes sectors which are not part of the selected industries presented in this figure. For a more detailed breakdown of this category, please refer to Figure 4.
Source: InfoUSA, 2011; Calculations by SABÉR Institute
Figure 4 shows the distribution of all the industries included in “Other.” The top three industry
employers in this category are Educational Services employing 37,528 workers, followed by
Other Services (33, 972), and Construction (28,356).
243,968
80,469
59,596
52,361
6,985
5,327
3,580
2,141
0 50,000 100,000 150,000 200,000 250,000 300,000
Other
Hospitality
Retail Trade
Health Care & Bioscience
New Energy
Information Technology & Security
Oil & Gas
Aerospace
Total Number of Employees
Ind
ust
ry
Total Employment by Industry Total Number of Establishments
33,291
5,897
8,585
6,055
735
787
428
204
10
Figure 4: Employment & Number of Establishments Among “Other” Industries in the San Antonio MSA, 2011
Source: InfoUSA, 2011; Calculations by SABÉR Institute
Business Owner Demographics
According to the U.S. Census Bureau, 2007 Survey of Business Owners, 84.2% of all businesses
in Texas were White-owned (or 1,822,440), followed by Hispanic-owned (20.7%), Black or
African-American-owned (7.1%), Asian-owned (5.3%), and Native Hawaiian and Other Pacific
Islander-owned (0.1%). Approximately 50.4% of all firms are male-owned, while 28.2% are
female-owned. The remaining 21.4% are equally male-/female-owned. Additionally, Table 3
shows employment and sales data broken down by race and ethnicity, and gender.
37,528
33,972
28,356
24,339
19,783
18,736
14,273
13,518
13,059
12,420
10,539
6,996
5,134
3,937
911
238
229
0 10,000 20,000 30,000 40,000
Educational Services
Other Services (except Public Administration)
Construction
Professional, Scientific, and Technical Services
Wholesale Trade
Finance and Insurance
Manufacturing
Real Estate and Rental and Leasing
Public Administration
Administrative and Support Services
Social Assistance
Transportation and Warehousing
Information
Unclassified Establishments
Agriculture, Forestry, Fishing and Hunting
Arts, Entertainment, and Recreation
Management of Companies and Enterprises
Total Number of Employees
Ind
ust
ry
Total Employment by Industry
1,279
Total Number of Establishments
6,826
4,016
4,860
2,226
3,452
1,332
2,396
985
2,019
993
694
729
1,121
289
49
25
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Table 3: Texas Business Owner Demographics
Level in 2007
Firms Employment Receipts ($1,000)
White-owned 1,822,440 3,848,954 802,522,358
Black or African-American-owned 154,283 72,652 9,280,648
Asian-owned 114,297 206,545 40,209,344
Native Hawaiian and Other Pacific
Islander-owned 1,196 1,106 376,969
Hispanic-owned* 447,589 395,673 61,895,886
Female-owned 609,947 588,474 96,803,111
Male-owned 1,090,854 2,911,524 651,009,743
Total** 2,164,852 8,712,639 2,621,467,877 Note: * Hispanic can be of any race. **Total includes all races and ethnicities.
Source: U.S. Census Bureau, 2007 Survey of Business Owners; Calculations by SABÉR Institute
Similar to the state of Texas, a great majority of firms (89.5%) in the San Antonio metropolitan
area are White-owned, followed by Hispanic-owned (32.9%), Black or African-American-owned
(3.4%), Asian-owned (3.0%), and Native Hawaiian and Other Pacific Islander-owned (0.1%). In
terms of gender, 51.7% of all businesses are male-owned and 28.2% are female-owned. The
remaining 20.1% are equally male-/female-owned.
Table 4: San Antonio MSA Business Owner Demographics
Level in 2007
Firms Employment Receipts ($1,000)
White-owned 154,274 345,194 60,652,611
Black or African-American-owned 5,821 4,894 394,967
Asian-owned 5,239 10,677 1,634,631
Native Hawaiian and Other Pacific
Islander-owned 119 92 21,055
Hispanic-owned* 56,644 58,694 7,454,152
Female-owned 48,531 50,830 7,217,664
Male-owned 89,137 257,893 47,799,563
Total** 172,399 708,430 144,232,069 Note: * Hispanic can be of any race. **Total includes all races and ethnicities.
Source: U.S. Census Bureau, 2007 Survey of Business Owners; Calculations by SABÉR Institute
Comparative Analysis of Small Businesses In Texas and San Antonio MSA
The following is a comparative analysis of small businesses employing less than 100 employees
in Texas and in the San Antonio MSA. This analysis includes a comparison of small businesses
for the top ten industries in the state of Texas and in the metro area of San Antonio and points
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out the growth trends for the period 1998-2009. All data are taken from the U.S. Census Bureau,
County Business Patterns.
Figure 5 shows the growth trends for the number of small businesses in the top ten industries in
the state. With almost 75,000 establishments in 2009, the Retail Trade industry remains the
leading industry with the most small business firms. From 1998 to 2009, the Retail Trade
industry grew by 3.94%. Industries with the greatest percent increases over the period 1998-2009
include Professional, Scientific, and Technical Services with 23.63% growth, Real Estate, Rental
and Leasing (24.37%), Health Care and Social Assistance (28.31%), Accommodation and Food
Services (28.66%), and Finance and Insurance (32.87%). While most of the top ten industries
saw growth from 1998-2009, the Wholesale Trade industry experienced a decline of 5.66%.
Figure 5: Trends in Small Business Establishments in Texas
Source: U.S. Census Bureau, County Business Patterns 1998-2009
Figure 6 shows the growth trends for the number of small businesses in the top ten industries in
the San Antonio MSA. The growth patterns for the metro area of San Antonio are similar to
those of Texas. The Retail Trade industry remained the industry with the most small business
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
To
tal N
um
ber o
f E
sta
bli
shm
en
ts
Total Number of Establishments by Top 10 Industries in Texas, 1998-2009
Retail Trade
Other Services (Except Public
Administration)
Professional, Scientific, and Technical
Services
Health Care and Social Assistance
Construction
Accommodation and Food Services
Wholesale Trade
Finance and Insurance
Administrative and Waste Management
Services
Real Estate, Rental and Leasing
13
establishments over the period 1998-2009, growing by 14.18%. Industries with the largest
percent increases over the period 1998-2009 include Professional, Scientific, and Technical
Services with 31.58% growth, Finance and Insurance (33.46%), Health Care and Social
Assistance (37.72%), Accommodation and Food Services (39.15%), and Real Estate, Rental and
Leasing (41.17%). The growth trend of the Wholesale Trade industry remained rather flat during
the period 1998-2009 with a growth rate of 0.20%.
Figure 6: Trends in Small Business Establishments in San Antonio MSA
Source: U.S. Census Bureau, County Business Patterns 1998-2009
Profiles of Small Businesses by Selected Industries in San Antonio MSA
Appendix III contains profiles for small businesses in the San Antonio MSA for industries
included in the SA 2020 initiative as well as other selected industries with a large concentration
of small business firms. Industries that are part of the SA 2020 plan are Aerospace, Health Care
& Bioscience, Information Technology & Security, and New Energy. Other selected industries
include Hospitality, Retail Trade, Oil & Gas, and Construction.
0
1,000
2,000
3,000
4,000
5,000
6,000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
To
tal N
um
ber o
f E
sta
bli
shm
en
ts
Total Number of Establishments by Top 10 Industries in San Antonio MSA, 1998-2009
Retail Trade
Other Services (Except Public
Administration)
Health Care and Social Assistance
Professional, Scientific and Technical
Services
Accommodation and Food Services
Construction
Finance and Insurance
Wholesale Trade
Administrative and Support
Management Services
Real Estate, Rental and Leasing
14
Establishments
Our analysis shows that the top three industries in respect to the total number of small business
establishments in 2011 include Retail Trade with 8,585 establishments, Health Care &
Bioscience (6,055), and Hospitality (5,897).
Employment
Industries employing the greatest number of workers are Hospitality (80,469), followed by Retail
Trade (59,596), and Health Care & Bioscience (52,361).
A great majority of small business establishments employ less than five employees. The
following are the industries with at least 50% of all establishments employing between one and
four employees: Aerospace (52.9%), Health Care & Bioscience (53.1%), Oil & Gas (59.6%),
Retail Trade (61.5%), Information Technology & Security (64.5%), and Construction (65.2%).
Sales Volume
The top three industries generating the greatest sales volume are Retail Trade ($16,596,033,000),
Health Care & Bioscience ($8,390,339,000), and Construction ($6,673,606,000).
Looking at the percentage of small business establishments by sales volume range, a great
majority of firms generate up to $1,000,000 annually. Industries with at least 50% of all
establishments generating up to $1,000,000 include Oil & Gas (50.2%), Aerospace (54.9%),
Construction (57.1%), Retail Trade (58.8%), Information Technology & Security (60.9%),
Health Care & Bioscience (64.9%), and Hospitality (76.5%).
Industry Trends
Aerospace
The state of Texas nationally ranks in the top three states in aerospace manufacturing in regard to
capital investments, employees, value added per employee, and value of shipments, according to
15
the U.S. Census Bureau. From 2008 to 2010, Texas was the only U.S. state to add aerospace
manufacturing jobs8.
With a total of 204 small business establishments in the San Antonio MSA area, the Aerospace
industry employs over 2,000 workers and generates an estimated $466.5 million in sales
revenue9. The industry’s growth in the San Antonio MSA over the past 20 years has been both
dramatic and consistent. The industry has grown 440% over the past 20 years, 260% over the
past 15 years, and almost 75% over the past 10 years. Although there was a small dip between
2008 and 2010, the Aerospace industry posted 10% growth over the 2006-2010 period, an
especially challenging period in the national economy. The number of employees in the industry
has almost doubled since 1990, recording an estimated total of 13,616 employees in 2010.
Wages in the industry have consistently been among the highest in the San Antonio MSA. They
have risen sharply in recent years, up by 67% over the past decade10
.
Health Care & Bioscience
The San Antonio MSA area is home to 6,055 Health Care & Bioscience small business
establishments, which employ well over 52,000 employees and generate $8.4 billion in annual
sales9. Analyzed separately, the Health Care industry employs 40,515 workers while the
Bioscience industry occupies 11,846. Stated differently, the Health Care industry employs an
estimated 77.4% of the total combined Health Care & Bioscience; Bioscience employs 22.6%.
In 2009, the economic impact of the Health Care & Bioscience industry was projected at $24.5
billion. Between 1999 and 2009, the industry added nearly 33,000 net new jobs, an increase of
35%. While it is important to look at and discuss the trends of Health Care and Bioscience
combined, it is also imperative to look at these two industries separately as they employ a
significantly different share of workers in the San Antonio metropolitan area.
Health Care
8 Taken from the Office of the Governor Web site http://www.texaswideopenforbusiness.com/key-
industries/aerospace-defense.html on December 27, 2011 9 Estimates based on analysis of InfoUSA data for San Antonio MSA, 2011
10 “The Aerospace Industry in San Antonio – Economic Impact in 2010,” by Richard V. Butler and Mary E. Stefl,
The Greater San Antonio Chamber of Commerce, December 2011.
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The top three industries in the Health Care sector in the San Antonio metro area include
Physicians & Surgeons with a total of 12,093 employees, followed by Dentists (5,160), and
Clinics (3,806)9. From 1999 to 2009, the economic impact of Health Care Services in San
Antonio MSA grew by 136.74%, from $4.9 billion in 1999 to $11.6 billion in 2009. Physicians
and Hospitals, the two largest provider groups, have consistently made a substantial contribution
to the San Antonio economy. In 2009, the economic impact of Hospitals was estimated at $6.57
billion, while the impact of Physicians was at $3.25 billion. Over the period 1999-2009, both
groups more than doubled in size: the economic impact of Hospitals increased by 146.65% and
that of Physicians rose by 136.51%11
. From November 2010 to November 2011, employment in
the Health Care Services in the state of Texas increased by 32,300 and 2.6%, respectively, from
1,255,600 in November 2010 to 1,287,900 in November 2011. The San Antonio MSA area
accounted for 15.79% of this annual increase18
.
Bioscience
According to the Governor’s Office, Department of Economic Development & Tourism12
, the
following are the key factors that strengthen the state’s status as a leader in the Bioscience
industry: (1) proactive government support, a concentration of highly trained biotech workers,
multiple top-tier medical and research institutions, a first-rate transportation and logistics
infrastructure, and a top-ranked business climate. In 2009, the total economic impact of the
Bioscience industry in the state of Texas was estimated at $75 billion. For every Bioscience job,
another 2.3 jobs were created elsewhere in the state’s economy. From 2005 through 2008,
employment in most of the major Bioscience sectors in Texas increased steadily and remained
relatively stable through 2009 despite the global recession. Bioscience employment trends for
2010 were generally positive. The major Bioscience sectors in San Antonio MSA with above-
average employment concentrations include Medical and Diagnostic Laboratories, Scientific
R&D Services, and the Hospitals sector.
11
“San Antonio’s Health Care And Bioscience Industry Economic Impact in 2009,” by Richard V. Butler and Mary
E. Stefl, The Greater San Antonio Chamber of Commerce, 2009. 12
“Texas Biotechnology Industry Report,” by Office of the Governor, Economic Development & Tourism, May
2011.
17
Hospitality
With a total of 80,469 employees, the Hospitality industry is the largest small business employer
in the San Antonio MSA area. From 1998 to 2008, the Hospitality industry’s economic impact
on the San Antonio MSA grew substantially, from $6.4 billion in 1998 to $11 billion in 2008.
While the growth of the industry over the period 1998-2008 was a modest 8%, the longer term
trend reflects a vibrant and dynamic industry. Furthermore, employment increased by 26% over
the decade. Total wages in the industry rose by 71% in the ten-year period between 1998 and
2008. Over the period 1998-2008, all of the Hospitality industry’s major sectors experienced
growth. The Restaurant sector remained the dominant sector throughout the decade. The
economic impact of the Restaurant sector increased by 80% during the period 1998-2008, from
2,500 million in 1998 to 4,500 million in 2008. This is equivalent to a 6.05% annualized growth
rate13
.
From November 2010 to November 2011, Texas’ Hospitality industry added 38,200 jobs. This is
an increase of 3.8%. The San Antonio MSA area accounted for 3.66% of the yearly increase18
.
Information Technology & Security
A total of 787 small business establishments in the San Antonio MSA area employ an estimated
5,327 workers in the Information Technology & Security industry and generate approximately
$1.6 billion annually. From 1998 to 2008 the economic impact of the industry in San Antonio
MSA doubled, from $4 billion in 1998 to $8 billion in 2008. Underlying the overall increasing
trend had been a shift in the relative importance of the two major sectors of the Information
Technology & Security industry, namely the Products and the Services sector. During the early
2000’s the Products sector suffered from the closing of two large semiconductor plants in the
city. While it increased by about 70% from 1998 to 2008, the Services sector nearly tripled over
the decade, rising by close to 171%. Due to its abundant supply of reasonably-priced electricity,
its highly developed power and networking infrastructure, and the region’s low risk of natural
disasters, San Antonio’s attractiveness as a location for major firms’ data centers will accelerate
this trend. Employment in the industry increased by 43.96% over the period 1998-2008, from
13
“The Economic Impact of San Antonio’s Hospitality Industry,” by Richard V. Butler and Mary E. Stefl, The
Greater San Antonio Chamber of Commerce, 2008.
18
10,870 in 1998 to 15,648 in 2008. The annual payroll in the industry nearly doubled over the
decade, increasing from 447.3 million in 1998 to 881.9 million in 200814
.
According to the TechAmerica’s Cyberstates 2011 report15
, Texas ranked second nationwide in
the number of high-tech workers, in the size of high-tech payroll, and in the number of high-tech
establishments in 2010. Moreover, TechAmerica reported that in 2010, the average tech industry
wage in the state of Texas paid 84% more than the average private sector wage.
New Energy
An estimated total of 735 small business establishments in the San Antonio metro area employ
about 7,000 workers in the New Energy industry and generate an annual total of $2.1 billion in
sales revenue9.
In its Annual Energy Outlook 2010 report16
, the U.S. Energy Information Administration (EIA)
forecasts several key trends in energy use of the next 25 years. Foremost are the increased use of
renewables and the declining reliance on imported fossil fuels. Between now and 2035, the EIA
projects the strongest growth in fuel use to occur in renewable fuels used to generate electricity
and to power vehicles. The EIA credits this growth first and foremost to government programs,
including state RPS programs like that in Texas, along with rising fossil fuel prices. Even though
fossil fuels will continue to be the nation’s primary energy source over the next 25 years, their
share of overall energy use is expected to fall from 84% in 2008 to 78% in 2035.
With abundant wind, solar, and biomass resources found across Texas, the state enjoys the
largest renewable energy potential nationwide. With over 4,800 companies employing more than
55,600 Texans in renewable energy sectors, the state has developed a solid foundation in the
growing renewable energy industry. In 2009, Texas was ranked second nationally in number of
14
“Information Technology In San Antonio – Economic Impact in 2008,” by Richard V. Butler and Mary E. Stefl,
The Greater San Antonio Chamber of Commerce, 2008. 15
Taken from the TechAmerica Foundation Web site http://www.techamericafoundation.org/cyberstates on
December 28, 2011. 16
“Annual Energy Outlook 2010 With Projections to 2035,” by U.S. Energy Information Administration, Office of
Integrated Analysis and Forecasting, U.S. Department of Energy, Washington DC, April 2010.
19
renewable energy jobs, with 15% growth from 1998 to 2007, and fourth nationally in new clean
energy patents over the same time period17
.
Retail Trade
Our analysis of InfoUSA 2011 data shows that the Retail Trade industry is the #2 industry
employer in the San Antonio metropolitan area, employing an estimated total of 59,596 workers.
According to the latest Texas Labor Market Review18
, job growth in the state was driven by
Retail Trade. With the addition of 33,000 jobs from October 2011 to November 2011, Retail
Trade continued its momentum as retailers embraced the holiday shopping season. The San
Antonio MSA area accounted for 5.76% of the monthly increase. With a revised growth of
10,300 jobs in October 2011, this industry has posted 43,300 jobs during the last two months,
recording the largest gain seen since 2007 for that time period. As major metro markets of Texas
have exceeded the pace of the nation’s output growth, it follows that statewide consumer
purchasing power and relative income expectations translate to superior retail spending19
.
Oil & Gas
A total of 428 small business firms employ an estimated 3,580 employees in the San Antonio
metro area in the Oil & Gas industry. Those small business establishments generate over $1.2
billion annually. From November 2010 to November 2011, employment in Oil & Gas Extraction
in the state of Texas increased by 6,500, from 82,900 in November 2010 to 89,400 in November
201118
. According to the December 2011 issue of Texas Labor Market Review18
, several
companies will bring over 2,000 jobs to San Antonio due to Eagle Ford Shale drilling projects.
The Eagle Ford Shale, an oil and natural gas producing field located just south of San Antonio,
has positively impacted the region’s economy. In 2010, this shale play generated close to $2.9
billion in revenue, supported about 12,600 full-time jobs in the area, and provided nearly $47.6
million in local government revenue. Under moderate assumptions, by 2020, the Eagle Ford
Shale is expected to account for close to $11.6 billion in gross state product, $21.6 billion in total
17
“Texas Renewable Energy Industry Report,” by Office of the Governor, Economic Development & Tourism,
August 2010. 18
“Texas Labor Market Review,” by Texas Workforce Commission, December 2011,
http://www.tracer2.com/admin/uploadedPublications/2012_TLMR-Dec11.pdf 19
“2011 Quarterly Economic Trends, Third Quarter,” by The Greater San Antonio Chamber of Commerce,
http://www.sachamber.org/cwt/external/wcpages/publications/Economic_Reports.aspx
20
economic impact, and support close to 67,971 full-time jobs in the area. Analysts, investors, and
industry experts agree that due to a high reservoir quality, the Eagle Ford Shale will likely
become a premiere oil and gas play in the future. High yield condensate and oil production
together with a favorable business climate are very attractive to individual operators, and they
are expected to play a key role in stimulating economic development in the region20
.
Construction
The Construction industry employs an estimated 28,356 workers in the San Antonio
metropolitan area and generates well over $6.6 billion in annual sales revenue. According to the
Texas comptroller21
, Texas lost over 17% of its workforce during the recession. However, the
industry has recovered approximately one-third of all jobs lost since the Construction industry
started growing again in the middle of 2010. In 2011, most of the jobs in the industry were added
in heavy and civil construction. While most sectors of the Construction industry have grown,
highway, street, and bridge construction and building finishing contractors have continued to see
declines. A positive development for the Texas Construction industry is the increase in the
number of multi-family building permits in 2011. From 2010 to 2011, the number of multi-
family building permits was up by 63%, increasing from 16,108 units to 26,193 units. According
to McGraw-Hill Construction Dodge, the total value of the contracts in 2011 for nonresidential
building construction of offices and warehouses in the state rose by 10.6% from 2010. Total
construction employment in Texas increased by 27,100 (or by 4.8%) during 2011. Statewide
construction employment totaled 594,500 in August 2011.
Appendix IV contains an outline of each industry and the corresponding industry cluster. Each
industry cluster was created based on the North American Industry Classification System
(NAICS) codes.
20
“Economic Impact of the Eagle Ford Shale,” by Center for Community and Business Research, University of
Texas at San Antonio, Institute for Economic Development, February 2011. 21
“2011 Annual Cash Report – Review of the Texas Economy,” Susan Combs, Texas Comptroller of Public
Accounts, http://www.window.state.tx.us/finances/pubs/cashrpt/11/texas_annual_cash_report_2011.pdf
21
Opportunities and Challenges for Small Businesses
This section outlines the most important issues and opportunities facing small business owners.
Based on our experience with the local business community as well as our research, challenges
and opportunities faced by local and regional small business firms are the same or similar as
those faced by small businesses nationwide. Challenges and opportunities seen in the national
and regional marketplace are not unique to national and regional small businesses. Rather,
American small business companies face the same issues and opportunities as their competitors
across the borders22
.
Challenges
Access to Capital
Access to capital enables small business owners to start, support, and expand their companies.
During the recession, both credit and capital availability for small firms fell sharply, thus
hindering small business owners’ efforts to finance their operations and start new business
ventures. While larger businesses normally rely on banks for only 30% of their financing, small
businesses receive 90% of their financing from banks23
.
As a result of the recession, commercial banks reduced their outstanding small loans by more
than $14 billion, or approximately 2%, between June 30, 2008, and June 30, 2009. During the
same period, the number of new commercial and industrial loans, including loans to small
businesses, fell by an estimated 24%23
.
In spite of overall economic recovery, the lending environment for small business firms may take
longer to recover completely. For instance, following the 1990 and 2001 recessions, commercial
lending continued to fall – dropping by 13.3% between 1990 and 1994, and 20.4% between 2001
and 2004. Hence, support for the small business lending market may continue to be necessary
even as economic growth resumes23
.
22
Taken from the Shirlaws Web site http://www.shirlaws.biz on December 19, 2011. 23
“Supporting America’s Small Businesses.” by The White House,
http://www.whitehouse.gov/sites/default/files/microsites/2011_erp_chapter7.pdf
22
Economy
Small firms continue to struggle in the economic downturn. The National Federation of
Independent Business (NFIB) reports that owners are less willing to expand their small
businesses, to hire additional workers, to invest in new plant and equipment, or to borrow
money.24
For small business owners, significantly higher energy costs affect both the bottom line
and the demand for their products and services. In 2001, the average cost of a barrel of crude oil
was $25.92; by 2007, that figure had grown to $72.37. By 2008, crude oil prices had swelled to
$142.43 a barrel. Since January 2011, crude oil prices have been fluctuating between $97.36 and
$114.83.25
Regulations
Regulations at state and federal levels challenge the success and growth of small businesses. The
U.S. Small Business Administration (SBA) estimated total small business regulatory costs at
$1.75 trillion at the federal level. Small businesses shoulder regulatory costs that are 36% greater
per employee than their larger competitors. Hence, businesses with fewer than 20 employees
spend $10,585 per employee per year, while firms with 500 or more employees spend $7,755 per
employee per year to comply with federal regulations. In general, regulatory compliance costs
place small businesses at a competitive disadvantage relative to large businesses, hindering their
ability to grow, create jobs, reinvest in their operations, and prosper.26
A ranking of the states
based on the policy environments for entrepreneurs can be seen in Figure 7.
24
Taken from the National Federation of Independent Business (NFIB) Web site http://www.nfib.com/research-
foundation/small-business-economic-trends-sbet-archive on May 12, 2011. 25
Taken from The Wall Street Journal (WSJ) Web site http://online.wsj.com/mdc/public/page/marketsdata.html on
May 12, 2011. 26
“Small Business – Big Opportunity: Finding Solutions for Small Business Challenges.” by The Travelers Institute, 2011
23
Figure 7
Small business survival index 2010: State rankings
(Ranked from the friendliest to the least friendly policy environments for entrepreneurship)
Source: Raymond J. Keating, Small Business and Entrepreneurship Council, Small Business Survival Index 2010, available at
http://www.sbecouncil.org/survivalindex2010/
Environmental Regulations
Compliance with environmental regulations is much more expensive per employee at small
businesses than at larger firms. The cost per employee for complying with environmental
regulations at firms with fewer than 20 employees is $4,101 per year. That is four times greater
than the $883 per year per employee at companies with 500 or more employees. Energy bills are
one of the top three expenditures for small businesses (only payroll and materials are higher).
When small firms face a spike in energy prices, they are not able to adjust the price of their
goods and services quickly enough to match the cost increases11
.
Cost and Availability of Health Insurance
The cost of health insurance has ranked as the top concern of small business owners. From 1999
to 2008, health insurance costs for small businesses increased by 129%.26
Small business firms
are disadvantaged relative to their larger competitors because of the higher premiums they must
24
pay to provide health insurance for their employees.27
Health insurance premiums have increased
significantly over the recent past, growing a cumulative 138% between 1999 and 2010, and
outpacing cumulative wage growth of 42% over the same period. These premium increases have
forced small business owners to make changes to the coverage they offer their workers,
including sharing the cost of coverage with their employees, pursuing lower cost options, or
choosing not to offer health coverage at all.28
Workforce
Businesses with fewer than five employees make up the largest percentage of employer firms
and they compete for labor resources with their larger counterparts. This becomes even more
difficult in light of the disparity in total compensation, and the result is greater employee
turnover. Research shows that firms that offer benefits have a 26.2% lower probability of having
an employee leave in a given year. Moreover, the provision of benefits increases the probability
of the employee staying another year by almost 14%.29
Tax Regulations
Tax compliance costs on American small businesses total $18 billion to $19 billion annually.
Companies with fewer than 20 employees spend $1,584 per employee every year to comply with
federal tax requirements. That is three times higher than the cost per employee for large
businesses. Furthermore, 75% of small businesses pay their business tax at individual rates rather
than at the corporate rate. High tax rates directly impact small firms’ cash flow. Hence, the more
a business pays in taxes at local, state, and federal levels, the less money the business has to pay
employees, keep the business operations running, and possibly add more jobs26
.
Risk Management
Based on a survey conducted by Travelers Select Accounts, risk management ranks relatively
low among priorities facing small business owners. Rather, small business owners prioritize
27
“The Economic Effects of Health Care Reform on Small Businesses and Their Employees.” by Executive Office
of the President, Council of Economic Advisers, July 25, 2009 28
Kaiser Family Foundation and the Health Research & Educational Trust (2011) 29
“The Relationship Between Employee Turnover and Employee Compensation in Small Business,” by John B.
Hope and Patrick C. Mackin (SAG Corporation), U.S. Small Business Administration, Office of Advocacy, July
2007.
25
activities related to growing their business over those related to protecting their business against
insurable risk26
. The American Red Cross noted that, “while reports vary, as many as 40% of
small businesses do not reopen after a major disaster like a flood, tornado, or earthquake.” 30
Opportunities
Increased Investments in Technology and Innovation
With many regional officials seeking the “next big thing” that will drive their local and regional
economies for years to come, there is an appreciation that small businesses are leading the way
toward new inventions, processes and products.31
What’s more, regions with greater
entrepreneurial growth have been associated with higher levels of innovation and technology
use, and states that promote new firm formation through public policy are more likely to
experience higher employment, incomes, and overall output.32
Pursuing New Markets Overseas
Overseas markets can provide new customers for small business owners, but entrepreneurs have
yet to fully tap their potential for growth in the export arena. One of the strengths in the economy
right now is the export sector. Exports increased to $172.7 billion, the most on records dating
back to 1992. A weaker dollar as well as rapid growth in developing countries has lead to
increasing U.S. exports.33
According to the International Trade Administration34
, a great number of businesses in San
Antonio MSA are worldwide exporters of machinery manufacturing. Out of a total of 506
machinery manufacturing exporters, 216 (or 42%) are businesses with less than 100 employees.
30
American Red Cross Web site, available at http://economics.about.com/od/smallbigbusiness/a/us_business.html.
American Red Cross, Preparing Your Business for the Unthinkable, available at
http://upson.redcross.org/Media/unthinkable2.pdf 31
“The Influence of R&D Expenditures on New Firm Formation and Economic Growth,” by Bruce Kirchoff and
Catherine Armington (BJK Associates), U.S. Small Business Administration, Office of Advocacy, October 2002. 32
“Taxes and Entrepreneurial Activity: An Empirical Investigation using Longitudinal Tax Return Data,” by Donald
Bruce and Tami Gurley, U.S. Small Business Administration, Office of Advocacy, March 2005.
33
Taken from The New York Times Web Site
http://www.nytimes.com/2011/05/12/business/economy/12econ.html?_r=1&scp=3&sq=exports&st=cse on May 12,
2011. 34
Taken from International Trade Administration Web Site
http://tse.export.gov/EDB/SelectReports.aspx?DATA=ExporterDB on June 14, 2011.
26
Promoting Business Ownership among Selected Demographic Groups
Women and minorities have been very entrepreneurial over the past few decades – a trend that is
expected to continue. For instance, in 2007, women owned 7.8 million businesses and accounted
for 28.7% of all businesses nationwide. These firms generated $1.2 trillion in receipts,
approximately 3.9% of all business receipts nationwide.35
The number of Hispanic-owned
businesses increased by 43.7% to 2.3 million, more than twice the national rate of 18.0%
between 2002 and 2007. Hispanic-owned businesses generated $345.2 billion in sales in 2007,
up 55.5% compared with 2002.36
From 2002 to 2007, the number of black-owned businesses
increased by 60.5% to 1.9 million, more than triple the national rate of 18.0%. Over the same
period, receipts generated by black-owned businesses increased by 55.1% to $137.5 billion.37
The number of U.S. businesses owned by people of Asian origin increased 40.4% to 1.5 million
between 2002 and 2007, increasing at more than twice the national rate and generating $507.6
billion in receipts, a 55.4% increase from 2002.38
Advancing Education and Training
Research shows that regions with more highly educated citizens tend to be more entrepreneurial
and to experience more rapid economic growth. From the perspective of small firms, it is
important to keep in mind that small businesses are often times the first employers of many
workers who are often less educated than the rest of the population. As a result, small businesses
must devote significant resources to training and educating their workforce.1
35
Taken from the U.S. Census Bureau Web site
http://www.census.gov/newsroom/releases/archives/business_ownership/cb10-184.html on May 12, 2011. 36
Taken from the U.S. Census Bureau Web site
http://www.census.gov/newsroom/releases/archives/business_ownership/cb10-145.html on May 12, 2011. 37
Taken from the U.S. Census Bureau Web site
http://www.census.gov/newsroom/releases/archives/business_ownership/cb11-24.html on May 12, 2011. 38
Taken from the U.S. Census Bureau Web site
http://www.census.gov/newsroom/releases/archives/business_ownership/cb11-74.html on May 12, 2011.
27
Appendix I: Texas Business Facts
Texas Business Facts for All Industries, 1998-2008
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Total Number of
Employees 7,570,820 7,763,815 8,026,438 8,161,321 7,993,559 8,051,148 8,118,483 8,305,102 8,711,476 9,041,030 9,231,955
Annual Payroll
($1,000) $229,185,833 $245,163,283 $269,917,800 $282,315,344 $277,847,486 $281,636,318 $293,572,510 $315,809,126 $347,735,827 $373,037,029 $394,696,044
Total Number of
Establishments 462,875 467,087 471,509 473,868 482,169 483,945 491,092 497,758 509,080 521,408 522,336
Number of Establishments by Employment Size
1-4 244,340 246,945 246,672 246,609 252,051 252,241 256,488 261,474 265,059 269,856 266,532
5-9 91,944 91,627 92,648 93,304 95,293 96,003 97,308 97,495 99,040 101,729 103,124
10-19 59,122 59,622 61,063 61,804 63,242 63,479 64,348 64,869 67,262 69,391 70,470
20-49 41,631 42,432 43,707 44,049 44,241 44,550 44,948 45,386 47,674 49,742 50,778
50-99 14,373 14,600 15,250 15,644 15,405 15,554 15,773 15,889 16,543 16,881 17,289
1-99 451,410 455,226 459,340 461,410 470,232 471,827 478,865 485,113 495,578 507,599 508,193
Source: U.S. Census Bureau, Country Business Patterns 1998-2009
Texas Business Facts for All Industries, 1998-2008
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Total Number of Establishments 462,875 467,087 471,509 473,868 482,169 483,945 491,092 497,758 509,080 521,408 522,336
Percent of Establishments by Employment Size
1-4 52.79% 52.87% 52.32% 52.04% 52.27% 52.12% 52.23% 52.53% 52.07% 51.76% 51.03%
5-9 19.86% 19.62% 19.65% 19.69% 19.76% 19.84% 19.81% 19.59% 19.45% 19.51% 19.74%
10-19 12.77% 12.76% 12.95% 13.04% 13.12% 13.12% 13.10% 13.03% 13.21% 13.31% 13.49%
20-49 8.99% 9.08% 9.27% 9.30% 9.18% 9.21% 9.15% 9.12% 9.36% 9.54% 9.72%
50-99 3.11% 3.13% 3.23% 3.30% 3.19% 3.21% 3.21% 3.19% 3.25% 3.24% 3.31%
1-99 97.52% 97.46% 97.42% 97.37% 97.52% 97.50% 97.51% 97.46% 97.35% 97.35% 97.29%
Source: U.S. Census Bureau, Country Business Patterns 1998-2009
28
Appendix II: San Antonio MSA Business Facts
San Antonio MSA Business Facts for All Industries, 1998-2009
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Total Number of
Employees 572,897 591,205 619,115 635,453 621,420 646,994 661,705 666,966 701,133 722,188 735,867
Annual Payroll
($1,000) $14,533,151 $15,665,296 $18,120,877 $19,133,837 $18,256,302 $19,304,184 $20,588,163 $21,519,197 $23,958,620 $25,939,804 $26,650,130
Total Number of
Establishments 33,047 33,375 33,599 33,659 34,479 37,015 37,635 38,623 39,852 40,635 40,535
Number of Establishments by Employment Size
1-4 17,084 17,201 17,190 17,205 17,597 19,052 19,474 20,014 20,393 20,750 20,213
5-9 6,594 6,647 6,647 6,578 6,803 7,301 7,424 7,503 7,751 7,926 8,113
10-19 4,321 4,279 4,445 4,482 4,612 4,903 4,983 5,156 5,429 5,438 5,617
20-49 3,143 3,263 3,250 3,263 3,340 3,550 3,526 3,648 3,790 3,970 3,983
50-99 1,064 1,118 1,185 1,209 1,203 1,245 1,282 1,306 1,415 1,423 1,477
1-99 32,206 32,508 32,717 32,737 33,555 36,051 36,689 37,627 38,778 39,507 39,403
Source: U.S. Census Bureau, Country Business Patterns 1998-2009
San Antonio MSA Business Facts for All Industries, 1998-2009
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Total Number of
Establishments 33,047 33,375 33,599 33,659 34,479 37,015 37,635 38,623 39,852 40,635 40,535
Percent of Establishments by Employment Size
1-4 51.70% 51.54% 51.16% 51.12% 51.04% 51.47% 51.74% 51.82% 51.17% 51.06% 49.87%
5-9 19.95% 19.92% 19.78% 19.54% 19.73% 19.72% 19.73% 19.43% 19.45% 19.51% 20.01%
10-19 13.08% 12.82% 13.23% 13.32% 13.38% 13.25% 13.24% 13.35% 13.62% 13.38% 13.86%
20-49 9.51% 9.78% 9.67% 9.69% 9.69% 9.59% 9.37% 9.45% 9.51% 9.77% 9.83%
50-99 3.22% 3.35% 3.53% 3.59% 3.49% 3.36% 3.41% 3.38% 3.55% 3.50% 3.64%
1-99 97.46% 97.40% 97.37% 97.26% 97.32% 97.40% 97.49% 97.42% 97.31% 97.22% 97.21%
Source: U.S. Census Bureau, Country Business Patterns 1998-2009
29
Appendix III: Industry Profiles for Selected Industries
Aerospace
San Antonio Metropolitan Statistical Area (MSA)
Industry Overview
The Aerospace Industry (NAICS 33, 42, 48, 49, 61, 62) includes establishments that are engaged in one or more
of the following areas: (1) manufacturing complete aircraft, missiles, or space vehicles; (2) manufacturing
aerospace engines, propulsion units, auxiliary equipment or parts; (3) developing and making aerospace product
prototypes; (4) aircraft conversion; (5) and complete aircraft or propulsion systems overhaul and rebuilding.
Please note that all data, except data on industry trends, refer to establishments with less than 100 employees.
Industry Facts Selected Major Industry Employers
Establishments 204 Allied Aviation Services San Antonio Air Life Transport
Employment 2,141 Flight Safety Services Corp. Landmark Aviation
Sales Volume $466,487,000 Nayak Aviation Lear Siegler Services Source: InfoUSA, 2011, Calculations by SABÉR Institute Source: InfoUSA, 2011
Source: InfoUSA, 2011, Calculations by SABÉR Institute Source: InfoUSA, 2011, Calculations by SABÉR Institute
Industry Trends
Texas’ Aerospace and Aviation industry directly employs about 200,000 workers at over 1,600 companies
earning an average annual income of more than $62,700. From 2008 to 2010, Texas was the only U.S. state that
added aerospace manufacturing jobs, according to the U.S. Bureau of Labor Statistics. Texas nationally ranks in
the top three states in aerospace manufacturing in terms of capital investments, employees, value added per
employee, and value of shipments, according to the U.S. Census Bureau. While San Antonio’s aerospace
industry has earned global recognition for its skills maintaining aging airframes and power plants, much of the
industry’s recent growth has come in the form of work on the world’s most advanced technology. The industry’s
growth over time has been both dramatic and consistent, growing 440% over 20 years, and almost 75% over the
past 10 years. Although there was a slight dip between 2008 and 2010, the industry posted 10% growth over the
2006-2010 period. Sources: Office of the Governor – Economic Development & Tourism; “The Aerospace Industry in San Antonio: Economic Impact in 2010,” by Richard V. Butler and Mary E. Stefl, The Greater San
Antonio Chamber of Commerce.
108
(52.9%)41
(20.1%)
19
(9.3%)
28
(13.7%)
8
(3.9%)
Number and Percent of Establishments by
Employee Size Range in San Antonio MSA, 2011
1-4
5-9
10-19
20-49
50-99
79
(38.7%)
33
(16.2%)
47
(23.0%)
18
(8.8%)
12
(5.9%)15
(7.4%)
Number and Percent of Establishments by Sales
Volume Range in San Antonio MSA, 2011
Less than $500,000
$500,000 - 1 Million
$1 - 2.5 Million
$2.5 - 5 Million
$5 - 10 Million
$10 - 20 Million
30
31
Health Care & Bioscience
San Antonio Metropolitan Statistical Area (MSA)
Industry Overview
The Health Care industry (NAICS 62) includes establishments primarily engaged in furnishing medical,
surgical, and other health services to persons. The bioscience industry (NAICS 32, 33, 42, 44, 45, 54, 62)
includes establishments primarily engaged in (1) medical and diagnostic laboratories services, (2) physical,
engineering and biological research, and (3) pharmaceutical and medicine manufacturing. Please note that all data,
except data on industry trends, refer to establishments with less than 100 employees.
Industry Facts Selected Major Industry Employers
Establishments 6,055 Acuity Hospital of South Texas Southeast Nursing & Rehab Center
Employment 52,361 Mission Trail Baptist Hospital CH2M Hill
Sales Volume $8,390,339,000 Fredericksburg Care Center Weston Solutions Source: InfoUSA, 2011, Calculations by SABÉR Institute Source: InfoUSA, 2011
Source: InfoUSA, 2011, Calculations by SABÉR Institute Source: InfoUSA, 2011, Calculations by SABÉR Institute
Industry Trends
The Health Care & Bioscience industry continues to be a dominant force in the San Antonio economy. In 2009,
the economic impact of the industry was estimated at $24.5 billion. The industry paid $6.5 billion in wages and
salaries to roughly 140,000 employees in 2009. One of every six San Antonio employees works in the Health
Care & Bioscience industry. Over the past decade, the Health Care & Bioscience industry has added nearly
33,000 net new jobs, an increase of 35%. Within the Health Care sector, Physicians and Hospitals are the two
largest provider groups. From 1999 to 2009, both have more than doubled in size: the economic impact of
Hospitals increased by 147% and that of Physicians rose by 136%. In 2009, San Antonio landed one of the
nation’s largest economic development prizes of the year – Medtronic’s new Diabetes Therapy Management &
Education Center. This patient support, education and sales facility is expected to provide at least 1,400 jobs
over the next five years. When fully staffed, Medtronic’s San Antonio center is projected to generate more than
$700 million per year in economic impact for the city and state. In 2009, San Antonio’s major biomedical
research institutions were awarded more than $393 million in external research grants. Source: “San Antonio’s Health Care And Bioscience Industry: Economic Impact in 2009,” by Richard V. Butler and Mary E. Stefl, The Greater San Antonio Chamber of Commerce.
3,215
(53.1%)1,389
(22.9%)
831
(13.7%)
465
(7.7%)
155
(2.6%)
Number and Percent of Establishments by Employee
Size Range in San Antonio MSA, 2011
1-4
5-9
10-19
20-49
50-99
1,659
27.4%
2,271
37.5%
1,263
20.9%
563
9.3%
232
(3.8%)
56
(0.9%)11
(0.2%)
Number and Percent of Establishments by Employee
Size Range in San Antonio MSA, 2011
Less than $500,000
$500,000 - 1 Million
$1 - 2.5 Million
$2.5 - 5 Million
$5 - 10 Million
$10 - 20 Million
$20 - 50 Million
32
33
Hospitality
San Antonio Metropolitan Statistical Area (MSA)
Industry Overview
The Hospitality Industry (NAICS 48, 51, 53, 56, 71, 72, 81) includes establishments that are engaged in one or
more of the following areas: (1) transportation; (2) travel arrangements; (3) lodging; (4) food services; and (5)
entertainment. Please note that all data, except data on industry trends, refer to establishments with less than 100
employees.
Industry Facts Selected Major Industry Employers
Establishments 5,897 Rita’s on the River Canyon Springs Golf Club
Employment 80,469 Salsalitos Mexican Restaurant Towne Car San Antonio
Sales Volume $4,566,094,000 Elegant Limousine & Charter Catering by Rosemary Inc. Source: InfoUSA, 2011, Calculations by SABÉR Institute Source: InfoUSA, 2011
Source: InfoUSA, 2011, Calculations by SABÉR Institute Source: InfoUSA, 2011, Calculations by SABÉR Institute
Industry Trends
From 1998 to 2008, the economic impact of San Antonio’s Hospitality industry grew substantially, from $6.4
billion in 1998 to $11 billion in 2008, an increase of 70%. Employment in the industry increased by 26% over
the decade. Total wages rose by 71% in the ten-year period between 1998 and 2008. From 1998 to 2008, all of
the industry’s major sectors experienced growth. The Restaurant sector remained the dominant sector
throughout this decade. Between 1998 and 2008, the economic impact of the Restaurant sector increased by
80%, while that of Lodging and Entertainment rose by 67% and 200%, respectively. The Hospitality industry
contributed about $150 million in taxes and fees to San Antonio, and more than $280 million to all local
governments combined. In 2008, the industry employed one out of every eight workers in the San Antonio
metropolitan area. Similarly, the state’s hospitality industry has been growing. From August 2010 to August
2011, Texas’ Hospitality industry gained 36,100 jobs, an annual growth rate of 3.5%. Sources: “The Economic Impact of San Antonio’s Hospitality Industry,” by Richard V. Butler and Mary E. Stefl, The Greater San Antonio Chamber of Commerce; San Antonio Area Tourism Council; Real
Estate Center, AT Texas A&M University.
1,951
(33.1%)
1,041
(17.7%)
1,601
(27.1%)
987
(16.7%)
317
(5.4%)
Number and Percent of Establishments by Employee
Size Range in San Antonio MSA, 2011
1-4
5-9
10-19
20-49
50-99
3,513
(59.6%)999
(16.9%)
1,099
(18.6%)
233
(4.0%)
38
(0.6%)
12
(0.2%)3
(0.1%)
Number and Percent of Establishments by Sales
Volume Range in San Antonio MSA, 2011
Less than $500,000
$500,000 - 1 Million
$1 - 2.5 Million
$2.5 - 5 Million
$5 - 10 Million
$10 - 20 Million
$20 - 50 Million
34
35
Information Technology & Security
San Antonio Metropolitan Statistical Area (MSA)
Industry Overview
The Information Technology & Security industry (NAICS 32, 33, 42, 44, 45, 51, 52, 54, 61, 81) includes
establishments primarily engaged in manufacturing (1) electronic computers, (2) computer storage devices, (3)
computer terminals, (4) point-of-sale, funds transfer, and automatic teller machines, (5) computer peripheral
equipment, (6) electronic audio and video equipment, (7) communications equipment, (8) electronic components
and accessories, and (9) magnetic and optical recording media. Please note that all data, except data on industry trends,
refer to establishments with less than 100 employees.
Industry Facts Selected Major Industry Employers
Establishments 787 E.J. Ward, Inc. Photo Telesis Corporation
Employment 5,327 Alliance Data Digital Defense Inc.
Sales Volume $1,582,281,000 Secure Logix Corporation Computer Solutions Source: InfoUSA, 2011, Calculations by SABÉR Institute Source: InfoUSA, 2011
Source: InfoUSA, 2011, Calculations by SABÉR Institute Source: InfoUSA, 2011, Calculations by SABÉR Institute
Industry Trends
The state of Texas ranked #2 nationwide in the number of high-tech workers, in high-tech employment growth,
in the size of high-tech payroll, and in the number of high-tech establishments in 2008. In 2008, the average tech
industry wage in the state paid 82% more than the average private sector wage. Between 1998 and 2008, the
economic impact of the Information Technology industry in San Antonio grew from $4 billion to $8 billion. The
number of employees in San Antonio grew by 44%, from 10,870 in 1998 to 15,648 in 2008. This is equivalent
to a 3.71% annualized growth rate. Annual payroll in the industry in San Antonio rose by 97% during the period
1998-2008, from $447.3 million in 1998 to $881.9 million in 2008. This is equivalent to a 7.02% annualized
growth rate. Sources: Office of the Governor – Economic Development & Tourism, San Antonio Area Tourism Council; “Information Technology in San Antonio: Economic Impact in 2008,” by Richard V. Butler and
Mary E. Stefl, The Greater San Antonio Chamber of Commerce; San Antonio Area Tourism Council; Real Estate Center, AT Texas A&M University.
508
(64.5%)
155
(19.7%)
66
(8.4%)
37
(4.7%)
21
(2.7%)
Number and Percent of Establishments by Employee
Size Range in San Antonio MSA, 2011
1-4
5-9
10-19
20-49
50-99
316
(40.2%)
163
(20.7%)
194
(24.7%)
50
(6.4%)
38
(4.8%)17
(2.2%)
7
(0.9%)1
(0.1%)1
(0.1%)
Number and Percent of Establishments by Sales
Volume Range in San Antonio MSA, 2011
Less than $500,000
$500,000 - 1 Million
$1 - 2.5 Million
$2.5 - 5 Million
$5 - 10 Million
$10 - 20 Million
$20 - 50 Million
$50 - 100 Million
$100 - 500 Million
36
37
New Energy
San Antonio Metropolitan Statistical Area (MSA)
Industry Overview
The New Energy industry (NAICS 22, 23, 33, 54, 81) includes establishments primarily engaged in operating
(1) hydroelectric power generation facilities, (2) fossil fuel powered electric power generation facilities, (3)
nuclear electric power generation facilities, (4) electric power generation facilities, (5) gas distribution systems,
and (6) water treatment plants. Please note that all data, except data on industry trends, refer to establishments with less than 100
employees.
Industry Facts Selected Major Industry Employers
Establishments 735 Ella S.A. Contracting Alamo Transformer Supply Co.
Employment 6,985 Goetting & Associates, Inc. Central Backhoe-Svc-Utilities
Sales Volume $2,100,576,000 Medina Electric Cooperative, Inc. Halff Associates, Inc. Source: InfoUSA, 2011, Calculations by SABÉR Institute Source: InfoUSA, 2011
Source: InfoUSA, 2011, Calculations by SABÉR Institute Source: InfoUSA, 2011, Calculations by SABÉR Institute
Industry Trends
In 2010, the Energy Industry contributed more than $170 billion to the Texas economy. In recent years, the state
has built upon its energy experience and trained workforce to take the lead in renewable energy production and
services. In 2009, Texas was ranked #2 nationally in the number of renewable energy jobs, with 15% growth
between 1998 and 2007. Furthermore, it was ranked #3 nationally in clean energy venture capital for the years
2006-2008, attracting more than $716 million. Between now and 2035, the Energy Information Administration
(EIA) projects the strongest growth in fuel use to occur in renewable fuels used to generate electricity and to
power vehicles. The EIA credits this growth primarily to government programs, including state RPS programs
like that in Texas, along with rising fossil fuel prices. Sources: Texas Renewable Energy Industry Report 2010; Office of the Governor – Economic Development & Tourism
346
(47.1%)
189
(25.7%)
101
(13.7%)
68
(9.3%)
31
(4.2%)
Number and Percent of Establishments by Employee
Size Range in San Antonio MSA, 2011
1-4
5-9
10-19
20-49
50-99
223
(30.3%)
120
(16.3%)
213
(29.0%)
75
(10.2%)
53
(7.2%)
38
(5.2%)9
(1.2%) 4
(0.5%)
Number and Percent of Establishments by Sales
Volume Range in San Antonio MSA, 2011
Less than $500,000
$500,000 - 1 Million
$1 - 2.5 Million
$2.5 - 5 Million
$5 - 10 Million
$10 - 20 Million
$20 - 50 Million
$50 - 100 Million
38
39
Retail Trade
San Antonio Metropolitan Statistical Area (MSA)
Industry Overview
The Retail Trade industry (NAICS 31, 42, 44, 45, 72, 81) includes establishments engaged in selling
merchandise for personal or household consumption and rendering services incidental to the sale of the goods.
In general, retail establishments are classified by kind of business according to the principal lines of
commodities sold (groceries, hardware, etc.), or the usual trade designation (drug store, cigar store, etc.). Please
note that all data, except data on industry trends, refer to establishments with less than 100 employees.
Industry Facts Selected Major Industry Employers
Establishments 8,585 La Fiesta Supermarkets Freightliner of San Antonio Ltd.
Employment 59,596 Save Cleaners & Laundry Optical Dispensary
Sales Volume $16,596,033,000 Lambeth Sales & Supply Co. Alamo Aircraft Source: InfoUSA, 2011, Calculations by SABÉR Institute Source: InfoUSA, 2011
Source: InfoUSA, 2011, Calculations by SABÉR Institute Source: InfoUSA, 2011, Calculations by SABÉR Institute
Industry Trends
Between 1998 and 2009, the number of employees saw an increasing trend in the Retail Industry in both San
Antonio and in the state of Texas. While the total number of employees in Texas grew by 18%, this number rose
by 29% in San Antonio. This is equivalent to a 1.48% annualized growth rate and 2.31%, respectively. Retail
Trade remained the #2 industry employer in both Texas and San Antonio for the time period 1998-2009. Since
December 2009, retail trade added 1,500 jobs and gained 2,200 jobs in San Antonio, an annual growth rate of
2.2%. The growth was mainly due to seasonal hiring. Between 1999 and 2009, total gross retail sales in San
Antonio increased by 13%, from $21.3 billion in 1999 to $24.1 billion in 2009. This is equivalent to a 1.26%
annualized growth rate. Retail sales per capita decreased by 8% over the period 1999-2009, from $12,619 in
1999 down to $11,653 in 2009. In 2009, the state average retail sales per capita amounted to $14,462. Sources: U.S. Census Bureau, County Business Patterns, Calculations by SABÉR Institute; Market Report 2011: San Antonio-New Braunfels, Real Estate Center at Texas A&M University.
5,282
(61.5%)
1,757
(20.5%)
864
(10.1%)
527
(6.1%)
155
(1.8%)
Number and Percent of Establishments by Employee
Size Range in San Antonio MSA, 2011
1-4
5-9
10-19
20-49
50-99
2,850
(33.2%)
2,198
(25.6%)
2,136
(24.9%)
812
(9.5%)
333
(3.9%) 154
(1.8%)
90
(1.0%)11
(0.1%)1
(0.0%)
Number and Percent of Establishments by Sales
Volume Range in San Antonio MSA, 2011
Less than $500,000
$500,000 - 1 Million
$1 - 2.5 Million
$2.5 - 5 Million
$5 - 10 Million
$10 - 20 Million
$20 - 50 Million
$50 - 100 Million
$100 - 500 Million
40
41
Oil & Gas
San Antonio Metropolitan Statistical Area (MSA)
Industry Overview
The Oil & Gas industry (NAICS 21, 23, 33) includes establishments primarily engaged in: (1) producing crude
petroleum and natural gas; (2) extracting oil from oil sands and oil shale; (3) producing natural gasoline and
cycle condensate; and (4) producing gas and hydrocarbon liquids from coal at the mine site. Types of activities
included are exploration, drilling, oil and gas well operation and maintenance, the operation of natural gasoline
and cycle plants, and the gasification, liquefaction, and pyrolysis of coal at mine site. Please note that all data, except
data on industry trends, refer to establishments with less than 100 employees.
Industry Facts Selected Major Industry Employers
Establishments 428 Hanson Aggregates Keller Material Inc.
Employment 3,580 Abraxas Petroleum Corp. A&L Underground Inc.
Sales Volume $1,216,575,000 M&M Contracting Ltd. Midtex Oil L.P. Source: InfoUSA, 2011, Calculations by SABÉR Institute Source: InfoUSA, 2011
Source: InfoUSA, 2011, Calculations by SABÉR Institute Source: InfoUSA, 2011, Calculations by SABÉR Institute
Industry Trends
Employment in Texas’ Oil & Gas industry rebounded to its pre-recession highs, according to the Texas Petro
Index (TPI). The state of Texas employed 224,200 workers in oil and gas exploration and production in June
2011, more than the 223,200 at the height of the last energy boom in October 2008 and nearly 15% more than in
June 2010. Oil production beat out natural gas during the first six months of 2011, reversing a trend that started
in 1997 when natural gas began to dominate the state’s energy production. In the past 12 months, the oil and gas
industry in the state of Texas has added more than 28,600 jobs. This is nearly 13% of all jobs added to the Texas
economy. Since 2009, the industry produced about 55% of all new jobs (both directly and indirectly). According
to the Energy Information Administration (EIA), Texas is the leading crude oil-producing state in the nation.
The state’s signature type of crude oil, known as West Texas Intermediate (WTI), remains the major benchmark
of crude oil in the Americas. Approximately three-tenths of total U.S. natural gas production occurs in Texas,
making it the Nation’s leading natural gas producer. Source: Texas Energy Alliance, Petro Index; U.S. Energy Information Administration, U.S. States, Texas.
255
(59.6%)65
(15.2%)
55
(12.9%)
41
(9.6%)
12
(2.8%)
Number and Percent of Establishments by Employee
Size Range in San Antonio MSA, 2011
1-4
5-9
10-19
20-49
50-99
105
(24.5%)
110
(25.7%)84
(19.6%)
69
(16.1%)
38
(8.9%)
15
(3.5%)
5
(1.2%)
2
(0.5%)
Number and Percent of Establishments by Sales
Volume Range in San Antonio MSA, 2011
Less than $500,000
$500,000 - 1 Million
$1 - 2.5 Million
$2.5 - 5 Million
$5 - 10 Million
$10 - 20 Million
$20 - 50 Million
$50 - 100 Million
42
43
Construction
San Antonio Metropolitan Statistical Area (MSA)
Industry Overview
The Construction industry (NAICS 23) comprises establishments primarily engaged in the construction of
buildings or engineering projects (e.g., highways and utility systems). Establishments primarily engaged in the
preparation of sites for new construction and establishments primarily engaged in subdividing land for sale as
building sites also are included in this industry sector.
Industry Facts Selected Major Industry Employers
Establishments 4,016 Applied Finish Systems J.E. Travis Painting Inc.
Employment 28,356 The Koehler Company Quarter Moon Plumbing Inc.
Sales Volume $6,673,606,000 Shadrock & Williams Mason Ltd. Acme Bridge Co. Source: InfoUSA, 2011, Calculations by SABÉR Institute Source: InfoUSA, 2011
Source: InfoUSA, 2011, Calculations by SABÉR Institute Source: InfoUSA, 2011, Calculations by SABÉR Institute
Industry Trends
According to the Texas Workforce Commission and Real Estate Center at Texas A&M University, Texas’
Construction industry lost 6,500 jobs from December 2010 to December 2011, a 1% decrease. Although the
Texas Construction industry lost jobs in the previous two fiscal years, and lost more than 17% of its workforce
during the recession, the industry has recovered almost one-third of the jobs lost since the industry started
growing again in the middle of 2010. With 4.8% job growth during 2011, most of the construction jobs added
have been in heavy and civil construction, and in utility construction work by specialty trade contractors. Only
one-fourth of the 27,100 industry jobs added during 2011 have been in the construction of buildings and
residences, as single-family residential construction remains depressed. Most sectors of the Construction
industry have grown, but highway, street, and bridge construction and building finishing contractors have
continued to see declines. The local construction sector appears to be holding stable, according to the recent
analysis by the Associated General Contractors of America. The construction employment report shows that the
metropolitan market had 42,900 construction jobs as of October 2011. This is up 2% from October 2010, when
the San Antonio metropolitan area had 42,000 construction jobs. Sources: “Monthly Review of the Texas Economy,” by Ali Anari and Mark G. Dotzour, January 2012; “2011 Annual Cash Report – Review of the Texas Economy,” Susan Combs, Texas Comptroller of
Public Accounts; The Associated General Contractors of America (AGC).
2,620
(65.2%)
627
(15.6%)
428
(10.7%)
245
(6.1%)
96
(2.4%)
Number and Percent of Establishments by Employee
Size Range in San Antonio MSA, 2011
1-4
5-9
10-19
20-49
50-99
1,357
(33.8%)
937
(23.3%)
1,118
(27.8%)
322
(8.0%)
175
(4.4%) 94
(2.3%)
12
(0.3%)1
(0.0%)
Number and Percent of Establishments by Sales
Volume Range in San Antonio MSA, 2011
Less than $500,000
$500,000 - 1 Million
$1 - 2.5 Million
$2.5 - 5 Million
$5 - 10 Million
$10 - 20 Million
$20 - 50 Million
$100 - 500 Million
44
45
INDUSTRY CLUSTERS
AEROSPACE
PRIMARY NAICS CODE PRIMARY NAICS DESCRIPTION
33451103 Search Detection & Navigation Instruments
33641103 Aircraft Manufacturing
33641201 Aircraft Engine & Engine Parts Manufacturing
33641301 Other Aircraft Parts & Equipment
33641401 Guided Missile & Space Vehicle Manufacturing
42386001 Other Transportation Goods Merchant Wholesale
48111102 Scheduled Passenger Air Transportation
48111201 Scheduled Freight Air Transportation
48121201 Non-Scheduled Air Freight Chartering
48121903 Other Non-Scheduled Air Transportation
48799002 Scenic & Sightseeing Transportation Other
48811901 Other Airport Operations
48819001 Other Support Activities-Air Transportation
49211001 Couriers
61151201 Flight Training
62191001 Ambulance Services Source: “The Aerospace Industry in San Antonio: Economic Impact in 2007,” by Richard V. Butler and Mary E. Stefl, The Greater San Antonio Chamber
of Commerce
HEALTH CARE & BIOSCIENCE
HEALTH CARE
PRIMARY NAICS CODE PRIMARY NAICS DESCRIPTION
62111101 Offices Of Physicians Except Mental Health
62121003 Offices Of Dentists
62131002 Offices Of Chiropractors
62132001 Offices Of Optometrists
62133001 Offices Of Mental Health Practitioners
62134001 Offices Of Specialty Therapists
62139103 Offices Of Podiatrists
62139901 Offices Of Miscellaneous Health Practitioners
62141001 Family Planning Centers
62149202 Kidney Dialysis Centers
62149301 Freestanding Emergency Medical Centers
62149803 All Other Outpatient Care Centers
62161001 Home Health Care Services
62191002 Ambulance Services
62199101 Blood & Organ Banks
62199906 Miscellaneous Ambulatory Health Care Services
62211001 General Medical & Surgical Hospitals
62221001 Psychiatric & Substance Abuse Hospitals
46
62231005 Other Hospitals
62311002 Nursing Care Facilities
62322001 Residential Mental Health & Substance Abuse
62331101 Continuing Care Retirement Communities
62331203 Homes For The Elderly
62399002 Other Residential Care Facilities
62412002 Services For The Elderly & Disabled
62431001 Vocational Rehabilitation Services
BIOSCIENCE
PRIMARY NAICS CODE PRIMARY NAICS DESCRIPTION
32541203 Pharmaceutical Preparation Manufacturing
32541401 Other Biological Prod Manufacturing
32619905 All Other Plastics Prod Manufacturing
33451001 Electro-Medical Apparatus Manufacturing
33451703 Irradiation Apparatus Manufacturing
33911201 Surgical & Medical Instrument Manufacturing
33911303 Surgical Appliance & Supplies Manufacturing
33911401 Dental Equipment & Supplies Manufacturing
33911502 Ophthalmic Goods Manufacturing
33911603 Dental Laboratories
42345007 Medical Equipment Merchant Wholesale
42346006 Ophthalmic Goods Merchant Wholesale
42349007 Other Professional Equipment Merchant Wholesale
42421002 Druggists Goods Merchant Wholesale
44311131 Household Appliance Stores
44311204 Radio TV & Other Electronics Stores
44611005 Pharmacies & Drug Stores
44612001 Cosmetic & Beauty Supply Stores
44613001 Optical Goods Stores
44619101 Food Health Supplement Stores
44619901 All Other Health & Personal Care Stores
45399811 Store Retailers Not Specified Elsewhere
54171101 Research & Development In Biotechnology
62151103 Medical Laboratories
62151201 Diagnostic Imaging Centers Source: “San Antonio’s Health Care and Bioscience Industry: Economic Impact In 2009,” by Richard V. Butler and Mary E. Stefl, The Greater San
Antonio Chamber of Commerce
47
HOSPITALITY
PRIMARY NAICS CODE PRIMARY NAICS DESCRIPTION
48111102 Scheduled Passenger Air Transportation
48511901 Other Urban Transit Systems
48521001 Interurban & Rural Bus Transportation
48531002 Taxi Services
48532002 Limousine Services
48551002 Charter Bus Industry
48599901 All Other Ground Passenger Transportation
48711002 Scenic & Sightseeing Transportation Land
48721003 Scenic & Sightseeing Transportation Water
48799003 Scenic & Sightseeing Transportation Other
48811901 Other Airport Operations
51213101 Motion Picture Theaters Except Drive-Ins
53211101 Passenger Cars Rental
56151001 Travel Agencies
56152003 Tour Operators
56159901 All Other Travel Arrangement Services
71111001 Theater Companies & Dinner Theaters
71113002 Musical Groups & Artists
71119002 Other Performing Arts Companies
71121102 Sports Teams & Clubs
71121202 Racetracks
71131003 Promoters With Facilities
71151001 Independent Artists Writers & Performers
71211001 Museums
71212001 Historical Sites
71213003 Zoos & Botanical Gardens
71219003 Nature Parks & Other Similar Institutions
71311001 Amusement & Theme Parks
71312002 Amusement Arcades
71391002 Golf Courses & Country Clubs
71394003 Fitness & Recreational Sports Centers
71395001 Bowling Centers
71399001 All Other Amusement & Recreation Industries
72111001 Hotels & Motels Except Casino Hotels
72119101 Bed-&-Breakfast Inns
72119902 All Other Traveler Accommodation
72121101 RV Parks & Campgrounds
72121403 Recreational & Vacation Camps
72131001 Rooming & Boarding Houses
72211016 Full-Service Restaurants
72221103 Limited-Service Restaurants
72221201 Cafeterias
48
72221302 Snack & Nonalcoholic Beverage Bars
72231001 Food Services Contractors
72232001 Caterers
72241001 Drinking Places Alcoholic Beverages
81293002 Parking Lots & Garages Source: “The Economic Impact of San Antonio’s Hospitality Industry,” by Richard V. Butler and Mary E. Stefl, The Greater San Antonio Chamber of
Commerce
INFORMATION TECHNOLOGY & SECURITY
PRIMARY NAICS CODE PRIMARY NAICS DESCRIPTION
33411101 Electronic Computer Manufacturing
33411901 Other Computer Peripheral Equipment Manufacturing
33441203 Bare Printed Circuit Board Manufacturing
33441302 Semiconductors & Related Devices Manufacturing
33441902 Other Electronic Component Manufacturing
42343004 Computer & Software Merchant Wholesale
44312001 Computer & Software Stores
45411101 Electronic Shopping
51121001 Software Publishers
32311501 Digital Printing
33461101 Software Reproducing
51821004 Data Processing & Related Services
52232003 Financial Transaction Processing & Clearing
54151102 Custom Computer Programming Services
54151201 Computer Systems Design Services
54151301 Computer Facilities Management Services
54151902 Other Computer Related Services39
61142001 Computer Training
81121201 Computer & Office Machine Repair
81121302 Communication Equipment Repair Source: “Information Technology In San Antonio: Economic Impact In 2008,” by Richard V. Butler and Mary E. Stefl, The Greater San Antonio Chamber
of Commerce
NEW ENERGY
PRIMARY NAICS CODE PRIMARY NAICS DESCRIPTION
22111905 Other Electric Power Generation
22112202 Electric Power Distribution
22121002 Natural Gas Distribution
22131002 Water Supply & Irrigation Systems
22132001 Sewage Treatment Facilities
22133001 Steam & Air-Conditioning Supply
23713006 Power & Communication System Construction
39
Please note that Information Assurance and Security is included under “NAICS 541519 – Other Computer-Related
Services.” For more information, refer to the following website: http://www.almps.com/NAICS-Codes.php
49
23799001 Other Heavy Construction
33341401 Heating Equipment Except Warm Air Furnaces
33341503 AC Refrigeration & Forced Air Heating
33361105 Turbine & Turbine Generator Set Units Manufacturing
33512104 Residential Electric Lighting Fixture Manufacturing
33512201 Non-Residential Electric Lighting Fixture Manufacturing
33531101 Electric Power & Specialty Transformer Manufacturing
33531208 Motor & Generator Manufacturing
54133001 Engineering Services
81121903 Other Electronic Equipment Repair
81131001 Commercial Machinery Repair & Maintenance Source: Iowa Workforce Development, Iowa’s New Energy Economy, http://www.iowaworkforce.org/newenergy/naicscodes.htm
RETAIL TRADE
PRIMARY NAICS CODE PRIMARY NAICS DESCRIPTION
44111001 New Car Dealers
44112002 Used Car Dealers
44121001 Recreational Vehicle Dealers
44122101 Motorcycle Dealers
44122203 Boat Dealers
44122904 All Other Motor Vehicle Dealers
44131001 Automotive Parts & Accessories Stores
44132001 Tire Dealers
44211003 Furniture Stores
44221001 Floor Covering Stores
44229101 Window Treatment Stores
44229903 All Other Home Furnishings Stores
44311104 Household Appliance Stores
44311202 Radio TV & Other Electronics Stores
44312001 Computer & Software Stores
44313002 Camera & Photographic Supplies Store
44411001 Home Centers
44412003 Paint & Wallpaper Stores
44413005 Hardware Stores
44419012 Other Building Material Dealers
44421002 Outdoor Power Equipment Stores
44422002 Nursery Garden & Farm Supply Stores
44511001 Supermarkets & Other Grocery Stores
44512001 Convenience Stores
44521006 Meat Markets
44522004 Fish & Seafood Markets
44523003 Fruit & Vegetable Markets
44529202 Confectionery & Nut Stores
44529905 All Other Specialty Food Stores
50
44531001 Beer Wine & Liquor Stores
44611005
44612003
Pharmacies & Drug Stores
Cosmetic & Beauty Supply Stores
44613001
44619101
44619901
44719005
Optical Goods Stores
Food Health Supplement Stores
All Other Health & Personal Care Stores
Other Gasoline Stations
44811001 Men's Clothing Stores
44812001 Women's Clothing Stores
44813001 Children's & Infants Clothing Stores
44814001 Family Clothing Stores
44815001 Clothing Accessories Stores
44819001 Other Clothing Stores
44821001 Shoe Stores
44831003 Jewelry Stores
44832001 Luggage & Leather Goods Stores
45111001 Sporting Goods Stores
45112003 Hobby Toy & Game Stores
45113002 Sewing Needlework & Piece Goods Stores
45114003 Musical Instrument & Supplies Stores
45121103 Book Stores
45121201 News Dealers & Newsstands
45122001 Prerecorded Tape CD & Record Stores
45211101 Department Stores Except Discount
45211201 Discount Department Stores
45291001 Warehouse Clubs & Supercenters
45299006 All Other General Merchandise Stores
45311001 Florists
45321003 Office Supplies & Stationery Stores
45322002 Gift Novelty & Souvenir Stores
45331001 Used Merchandise Stores
45391001 Pet & Pet Supplies Stores
45392002 Art Dealers
45393001 Manufactured Mobile Home Dealers
45399102 Tobacco Stores
45399802 Store Retailers Not Specified Elsewhere
45411101
45411302
Electronic Shopping
Mail-Order Houses
45421002 Vending Machine Operators
45431103 Heating Oil Dealers
45431202 Liquefied Petroleum Gas Bottled Gas Dealers
45431902 Other Fuel Dealers
45439002 Other Direct Selling Establishments
81292103 Photo Finishing Laboratories Except One-Hour
31181102 Retail Bakeries
72221315 Snack & Nonalcoholic Beverage Bars
51
42413023 Industrial Paper Merchant Source: U.S. Census Bureau, 2007 NAICS Definition, http://www.census.gov/cgi-
bin/sssd/naics/naicsrch?chart_code=44&search=2007%20NAICS%20Search
OIL & GAS
PRIMARY NAICS CODE PRIMARY NAICS DESCRIPTION
21111102 Crude Petroleum & Natural Gas Extraction
21231102 Dimension Stone Mining & Quarrying
21231907 Other Crushed & Broken Stone Mining
21232101 Construction Sand & Gravel Mining
21232201 Industrial Sand Mining
21232502 Clay Ceramic & Refractory Minerals Mining
21239903 All Other Non-Metallic Mineral Mining
21311106 Drilling Oil & Gas Wells
21311202 Support Activities For Oil & Gas Operations
23712003 Oil & Gas Pipeline Construction
23891001 Site Preparation Contractors
33251015 Hardware Manufacturing
33313202 Oil & Gas Field Machinery & Equipment
33351209 Metal Cutting Machine Tool Manufacturing Source: U.S. Census Bureau, 2007 NAICS Definition, http://www.census.gov/cgi-
bin/sssd/naics/naicsrch?chart_code=21&search=2007%20NAICS%20Search
CONSTRUCTION
PRIMARY NAICS CODE PRIMARY NAICS DESCRIPTION
23611502 New Single-Family General Contractors
23611803 Residential Remodelers
23621001 Industrial Building Construction
23622003 Commercial Building Construction
23711002 Water & Sewer System Construction
23721002 Land Subdivision
23731001 Highway Street & Bridge Construction
23811001 Poured Concrete Structure Contractors
23812003 Steel & Precast Concrete Contractors
23814004 Masonry Contractors
23815003 Glass & Glazing Contractors
23816001 Roofing Contractors
23817002 Siding Contractors
23819008 Other Building Exterior Contractors
23821001 Electrical Contractors
23822001 Plumbing & HVAC Contractors
23829005 Other Building Equipment Contractors
23831001 Drywall & Insulation Contractors
23832003 Paint & Wall Covering Contractors
23833002 Flooring Contractors
52
23834001 Tile & Terrazzo Contractors
23835002 Finish Carpentry Contractors
23839002 Other Building Finishing Contractors
23899001 All Other Specialty Trade Contractors Source: U.S. Census Bureau, 2007 NAICS Definition, http://www.census.gov/cgi-
bin/sssd/naics/naicsrch?chart_code=23&search=2007%20NAICS%20Search