Perry says Texas needs to foster economic growth

Even though Texas remains on fairly solid financial ground, local economic development officials and state policy makers agree that fostering economic growth is the key to success in a struggling economy.

Gov. Rick Perry on Friday met with leaders of key trade associations to hear first-hand how the current national economic situation is impacting Texas industries. It was the first of several meetings Perry will hold with industry leaders from across the state.

"Although our economy remains one of the strongest in the nation, it is still interlaced with economies of other states that are suffering, and we must continue to monitor the current financial situation closely," Perry said in a news release. "By meeting directly with industry leaders, I can gain a better understanding of how Texas industries are faring and what they expect to see in the marketplace in the near future."

The governor was joined in Austin by representatives from several trade associations, including the Independent Bankers Association of Texas, Texas Association of Business, Texas Association of Manufacturers, Texas Association of Realtors, Texas Bankers Association and Texas Credit Union League.

The diversity of Texas' economy has prepared the state to withstand the current instability in the national economy, and stronger guidelines for home equity borrowing and lending have resulted in Texas retaining some of the lowest levels of mortgage defaults among the nation's top 10 most populous states, Perry said.

The Financial Times recently ranked Texas as the number one state economy in the nation in light of the ongoing economic and financial slowdown. States' positions were based on a ranking of four separate economic indicators: employment growth rate, state product growth rate, personal income growth rate and home foreclosure rate.

Texas continues to be a leader in job creation, generating nearly half of all jobs created in the nation from August 2007 to August 2008; has an unemployment rate of 5 percent, a full percentage below the national average; and is home to more Fortune 500 headquarters than any other state in the nation. The governor attributed the relatively strong Texas economy to the state's disciplined, principled policies of limited growth in spending, low taxes and reasonable regulatory climate that have fostered an environment that encourages job creation.

While Texas remains in a substantially better economic position than other states in a turbulent national economy, Perry continues working with the public and private sectors to identify opportunities to maintain and enhance Texas' economic edge and competitive position in the global marketplace.

"I agree with Governor Perry that we need to foster economic growth," Amanda Nobles, executive director Kilgore Economic Development Corporation, said.

According to Nobles, many Kilgore industries are closely tied with customers in other states.

"If the economy is down in those areas, consumers are not going to buy our manufactured products," Nobles said. "Likewise our companies cannot manufacture products that will not sell, so there is a trickledown effect."

According to Nobles, Kilgore has been fortunate, because this national downturn has not caused this region to experience job losses.

"The recession in the nation will eventually affect us and if orders for products made by local manufacturers slow, then our manufacturers will have to respond," Nobles said. "It is always a terrible thing when companies are forced to cut hours or jobs, but sometimes that is the only way a company can cut costs."

According to KEDC executive director, the great thing about Kilgore's economy is that many companies here are still creating jobs, so if other companies have to resort to layoffs, there are other jobs available.

"It would be far worse to ex- perience a layoff in a region where no jobs waited," Nobles said. "It does not make it any easier to lose jobs, but at least there is an alternative."

Nobles said local governments would have to get creative in public policy if there was a downturn in Kilgore.

"I think we will have to figure out a way to help local companies," Nobles said. "Luckily, they are all strong companies and have good management practices."

Nobles said creative strategies for KEDC include amendments to economic development agreements and extension of agreement terms.

At other local levels, Nobles said there are other ways to help.

"We need to keep taxes low," Nobles said. "The Freeport Tax is one great option for our manufacturers."

In the event of a downturn, KEDC would do as much as possible to help job seekers find employment, Nobles said.

"We could hold job fairs, work closely with Workforce Solutions, or inform the public of where the jobs are," Nobles said. "Right now we are stable; we will have keep an eye on the national economy, the state economy and regional economy and plan accordingly."

According to a survey conducted by www.CareerBuilder.com, 32 percent of businesses plan to hire full-time employees this year. Despite the sluggish economy, many industries are prosperous and may even face shortages of workers to fill positions in these fields. Those in need of employment might try and revive their talents in a fresh industry.

"One recession-resistant industry is education, especially in the South. Skilled teachers are needed as school enrollments increase," said John Challenger, CEO of Challenger, Gray and Christmas, an outplacement firm. "This shows promise not only for education majors, but for administrators, counselors and other professionals."

According to Challenger, other healthy industries are energy and envir o n - mental.

"Power generation has been a big issue for our nation. People with knowledge of oil, gas, and renewable energy could see numerous employment opportunities," he said.

Occupations in the medical field, such as physicians' assistants, therapists, and aides, are also in demand, Challenger said.

"The lack of healthcare workers could become a void to fill as baby boomers age and need medical attention," Challenger said.

He adds security is another industry experiencing an upswing, whether it is at United States borders, local police, or even online security.

"These industries offer opportunities that do not require workers to switch career paths, but rather transition abilities to new sectors that thrive in today's challenged economy," Challenger said.