| Eagle Ford Helped SAEDF Meet 2011 Goals |
|
A year ago this month, 2011 looked like it would be a down year for business investments and job creation due to a sluggish economy. Then, like the masked Lone Ranger, the Eagle Ford Shale rode to the rescue. Oilfield-services investments accounted for 2,650 jobs in 2011, or 54 percent, of the 4,917 total jobs stemming from investments that received assistance from the San Antonio Economic Development Foundation and its partners. Another surprise last year came from the foundation's new role: business retention. Local companies made business investments that led to 1,212 new jobs, or one quarter of total jobs during the foundation's first full year as a public/private partnership after the city and county pledged in 2010 to commit public funding. Subtracting the locally created new jobs, outside new business investments led to 3,705 jobs in 2011. That's higher than Hernandez' prediction for 2011 of 3,500 new jobs from outside companies. The biggest Eagle Ford-related announcements were 1,500 jobs from Halliburton Co. and 500 by Baker Hughes Inc. The largest nonenergy-related jobs creation came from Kohl's, which is adding 800 back-office positions to the 1,000 it already had. Of the 21 companies that made business investments in the San Antonio area last year, seven received incentives, Hernandez said. In 2009, EDF assisted with outside business investments leading to 4,857 jobs. The 2010 figure was 4,157 jobs. The goal for 2012, including outside business investments and local-company expansions, is 4,100 from between 20 and 23 companies, Hernandez said. “We have good reasons to expect 4,000-plus jobs for 2012,” Hernandez said. EDF will try to build on 2011's Eagle Ford-related job creation by seeking business investments from supplier companies to the big drilling giants that are coming to the San Antonio area: Halliburton, Baker Hughes, Schlumberger and others. Under its public contracts, at least 25 percent of EDF-assisted jobs had to pay more than $40,400 a year, excluding benefits, which is the average of the last four quarters of Bexar County incomes. Next year's standard will be $42,300. Through the first three quarters of 2011, new jobs paying above the wage standard already equal 31.7 percent of the entire year's total of 4,917 jobs. The percentage will rise when the fourth quarter is tabulated. EDF starts 2012 with 90 prospects, or companies looking for sites including San Antonio. Of those, only two are proposing more than 500 jobs, even smaller than the seven that were looking to do the same a year ago. Hernandez is puzzled by the low number of big-job prospects. “We're a city companies must look at if they are operating in the Southwest,” he said. EDF's budget will grow to $2.5 million this year, up from last year's $2.1 million, with more public funds and additional private-sector members, Hernandez said. Of that, some $840,000 will be spent on marketing, including advertising, public relations, travel and other related expenses. The EDF staff, now at 10, will remain the same. Will 2012 have surprises like 2011 did? We'll know by next January. Read more: http://www.mysanantonio.com/business/business_columnists/david_hendricks/article/Hendricks-Eagle-Ford-helped-EDF-meet-2011-goals-2647660.php#ixzz1k2Q97I3z |



