Small Business Study: A Profile of Small Businesses in San ... · 5 regional economic development,...

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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.

Transcript of Small Business Study: A Profile of Small Businesses in San ... · 5 regional economic development,...

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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.

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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

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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,

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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

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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

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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.

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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

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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

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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

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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

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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.

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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.

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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.

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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

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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

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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

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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

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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

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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.

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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.

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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.

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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