Whether you are from Texas or not, you can’t help but admire the growth in the economy. Businesses are flocking to the area to establish a base. Many businesses are moving there from environments that may not have been as welcoming to businesses. That isn’t the only reason the Texas economy is seeing growth, and in this article, we are going to look at seven reasons it just keeps growing in spite of what other economies are experiencing.
1. Government Growth
A growing government means more jobs for everyone in Texas. Since Texas budgets bi-annually, they did not experience the tough times many other governments did in 2008. There have been some changes since then, but as Texas government continues to expand, more people are coming to reap the benefits in the state.
2. Military Spending
With money flowing into Texas from military spending, not only is the military benefiting from this spending, but the businesses connected to and surrounding these areas are benefiting as well. The Comptroller study found that the 15 major military installations located in Texas generate more than $136.6 billion in economic activity here each year, and add $81.4 billion to our gross state product.
These numbers are nothing to sneeze at and are a big part of why you will continue to see growth in the Texas economy. Many businesses find this stable and progressive area of growth as an attraction to the Texas business world.
3. No Housing Bubble
While other areas saw steep increases in prices of homes, Texas didn’t see the spike in pricing. Not only does Texas having plenty of lands where you can build cheap keep the prices low, but there is also the matter of state regulations on home equity loans and cash-out loans that saved people from themselves in tough times.
4. Cheap Labor from Immigrants
Many of the jobs offered in Texas are minimum wage jobs, and there are more fears around the cheap labor from immigrants, but it is still an attractive part of employing in the state. Ensuring that employees are legal is important to ensure that you do not experience major problems. Many people choose to work with a professional employer organization in Texas to keep from getting into hot water in these areas. Knowing and understanding the laws is important so that you can stay compliant with all laws in Texas.
5. Consumer Oriented Population
Much of the Texas population is young and ready to spend money. Since there are multiple military bases in Texas filled with young people far from home from reasoning parents, there are plenty of people that are ready to buy retail. Whether it is cars, clothes, electronics or other shiny objects, people are ready to buy, and this makes for a booming economy.
Many of the people that move to Texas are young professionals that bring families with them. One of the things that parents love to do is spend money on their kids, and this is happening in Texas.
6. High Tech Industries
There are many high tech industries in Texas, and these were shown to experience a short period of decrease in the recession vs. many of the other industries that were experiencing hard hits during the recession.
Along with “sin” industries and entertainment, technology is one of the industries that do well even during recessions because people want them so they can feel better.
7. Texas Exports
Since Texas producers, many products like the high-tech goods referenced above, oil and gas, Texas can export many of its products. During the recovery of Texas, exporting goods has allowed for Texas to bring in the foreign capital while other states are not back up on their feet yet.
“Since 1998, the state has increased its total exports by 217 percent, compared to 139 percent for the country as a whole. California’s have risen by a comparatively paltry 66 percent, “ according to the Atlantic article.
State level planning allow Texas to have some of this advantage by making it a less expensive place to do business than many other states. While many exporting activities done by the states have suffered, Texas is going strong with its oil and gas. The prospects look fantastic for those that are looking to expand their business in Texas exporting or otherwise.
If you are trying to decide on whether or not you should do business in Texas due to the booming economy, you should at least note that there is not going to be any decrease in the momentum of the state in the foreseeable future. With exports high, jobs coming to the state and more people moving every day, this is a great place to open a business.
Those of you that are not familiar with the laws of Texas might find it helpful to speak with and partner with a Texas PEO to comply with the state and federal laws that govern business in the area. It is a necessity that you maintain your compliance with all of the laws since lawsuits can be time-consuming as well as costly.
Now that you know more about Texas, its booming economy and why so many people and businesses are moving there, you have to decide on whether Texas is the right place for you and your business expansion.
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