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More Good Economic News for Texas

By
Real Estate Agent with Century 21 Westbank Summit

Texas Should Enjoy Benefits of Government Spending

While much of the country struggles with job creation, Texas again should have an advantage.  Whether or not you are for govenment spending, if you live in texas, much of that government spending will be right here in Texas.

Mary Scott Nabers, CEO of Strategic Partnerships Inc. in Austin provided some very good information in a recent article in their newsletter.

I have included that article below for your enjoyment.  Please read and enjoy and be glad the we live in the great state of Texas.

 Government spending, contracting in Texas will exceed most other states

 By Mary Scott Nabers, CEO of Strategic Partnerships, Inc.

The current economic downturn has caused most private sector firms to think long and hard about spending and purchasing decisions. However, government purchasing and contracting will definitely continue...as it must to ensure that taxpayer and constituent needs are met. The economic vitality in Texas is being noticed throughout the nation.

It is hard to find any area in Texas where there is not construction and new projects being announced on a weekly basis. In Brazoria County, work is continuing on the county's juvenile detention center and the adult detention center is expanding. Angleton has projects that include construction of streets, a new park and an expansion of the city hall. Taxpayers in the Angleton ISD recently passed a $140 million bond package that includes construction of a new high school, stadium and an agricultural building as well as upgrades of all campuses in the district.

Just recently, San Antonio builders announced they hope to find 2,000 construction employees at a job fair this week to help with multiple upcoming construction projects. The projects include expansion of Fort Sam Houston, a regional medical center and a technical education and training campus.

 

Earlier this month, more than $3 billion in local government bond packages passed in cities throughout Texas. The funding that results includes construction for public schools, community colleges, city projects and public hospitals.

Continued spending at all levels of government will help reduce the impact of the overall national economic downturn. In fact, state and local governments' annual spending is on track in 2008 to exceed $2 trillion for the first time ever!

Some government entities facing budget shortages have "reinvented" themselves. For example, Taylor County signed on as an early supporter of the wind energy industry in the early 2000s. In 2003, net property tax values were $4 billion. Today, net property tax value in the county is $6.2 billion, which county officials attribute in large part to the wind industry.

Companies hoping to increase their share of government contracts may have to do the same - reinvent themselves. If governmental entities ever needed creativity, visionary ideas, exemplary service and quality solutions that offer cost savings, it is now. Competition for public sector contracts is likely to increase so products and services must be competitive in price. But, any company overlooking government marketplaces should think long and hard about the size of the market they are ignoring.

It pays to watch trends, especially governmental trends. What is happening in one state or in two or three regions is most likely happening throughout the country. One of those recent trends is a growing demand for "green" construction and "green" products.

Environmental concerns are huge and governmental entities are leading the movement to protect the universe. Competition in this area is not all that fierce yet so architectural and construction firms, consultants, attorneys and other service providers should take note. Firms with professionals and employees who are Leadership in Energy and Environmental Design (LEED) accredited will have advantages over competitors.

The Bureau of Economic Analysis reports that state and local government spending for the third quarter of Fiscal Year 2008 was up 7.4 percent over the previous year's third quarter figures. And the new administration has identified federal assistance to state and local governments as a top priority. There is no doubt that 2009 will be a good year for government contractors in Texas.

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