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cowboytx26

Incredible White Collar Growth in San Antonio

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I think that it is unprecedented in this city's history to have so many companies coming here and bringing so many high paying jobs. I wanted to provide a run down in this topic. I think San Antonio might be in a unique situation in this nation at this time with our job high growth tear. Here's a compiled list:

Under Consideration:

1.) Bank of America: 2,000 jobs

2.) World Savings: 3,000 jobs

Already Announced:

1.) Washington Mutual: 2,000 jobs initial - 4,200 jobs in 7 years

2.) Toyota: 2,000 jobs by 2006

3.) Toyota on-site suppliers: 2,100 by 2006

4.) National Security Administration (NSA): 6,000 jobs in 4 years

5.) BRAC Realignment consolidation at Ft Sam Houston: 4,000 jobs

So, we will have over 20,000 high paying jobs once these already announced expansions come to fruition. We might possibly have another 5,000 beyond that. While these numbers are important, even more important is the caliber of these institutions. It is even more impressive when you think about all the spin-off jobs these announcements will produce. Here in San Antonio we are fortunate to say that we have a bright future ahead so long as we can respond effectively to the other issues facing this city - education and transportation. This will make San Antonio a larger city, a wealthier city, and a bigger contributor to the overall success of this nation. This should instill pride in the hearts of every San Antonian!

This is an exciting time to see the growth of this awesome city!

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Just a follow up, these job numbers do not include spin-off jobs. Apparently, calculating spin-off jobs is not an exact science. One estimate provided by the Center of Automotive Research, for example, says that each Toyota job will create 6.6 spin-off jobs, for a total of 13,200 jobs; however, the Federal Reserve estimated 7,300. Toyota officials have said that they believe that the 13,200 job estimate was "conservative" even though it was the high estimate.

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A study done by a committee appointed by the San Antonio City Council shows that the financial services industry is now the largest industry in the city, and has been since 2001. The study finds that financial services has a $20.5 billion per year economic impact, which is nearly $8 billion higher than the biomedical industry.

While the biomedical sector contains more than twice the jobs of the finance sector and generates more direct payroll, financial services provide the largest average wage among the five driver industries studied in San Antonio, the study said.

The average salary in financial services is $52,612, based on 2004 data. The second-highest average wage

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With the recent study showing that the finacial services industry is now the leading industry in the city, San Antonio leaders are looking to make it a leading financial center in the Southwest. The city leaders have already begun the process by talking to the Chicago Stock Exchange and Mexico's Stock Exchange (Bolsa) about bringing a presence to the city. There are also could be talks about creating a hybrid exchange for NAFTA coutries to create better trading opportunities. Something such as this would give SA an international presence in the finanial industry.

Cavazos says financial leaders in Mexico are especially interested in exploring the possible formation of a NAFTA-like exchange for American, Canadian and Mexican companies that are doing business with each other. He says those officials believe that it might make the most sense -- particularly from a marketing perspective -- for the base of operations for such a venture to be placed in San Antonio.

San Antonio Business Journal: S.A. is primed for financial success

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World Savings Bank has asked the city and county for assistance with tax breaks that would allow them to expand one facility and build a second one creating at least 2,000 and possibly up to 5,000 new jobs.

One is for an expansion at the Westover Hills site, and the other is for a proposed facility on land it has acquired at Nacogdoches and North Loop 1604 across from Rolling Oaks Mall.

World Savings was awarded tax abatements in 1993 for it's Westover Hills site where it initially promised 875 jobs, today that facility employs about 3,000 people.

San Antonio Express-News:

World Savings banking on tax breaks

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San Antonio Business Journal: Economists say city is at the threshold of historic growth

Great article about the growth of the San Antonio economy. Between September 2004 and September 2005, 12,700 new jobs were created in the city. Also, sales tax revenues grew 11.5% from April-Sept. 2005 compared to the same six month period in 2004. One of the factors the SA has going for it is it's diverse economy, this is expected to be one of the strongest years for the tourism industry and the finacial sector is seeing huge growth. It was noted that the city, county, and business community currently have a great working relationship.

Last December, noted Texas economist Ray Perryman told San Antonio business leaders that, despite a recent downturn in the economy, this city's future was bright. Addressing an Economic Outlook Conference, Perryman told those area business leaders that the San Antonio region would gain upwards of 87,000 new jobs by 2009. He added that the Alamo City was well-positioned to take real advantage of its geographical location along the increasingly important IH-35 Corridor.

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Wachovia is looking to expand their footprint in SA. The bank opened up 5 branches in 2005 and plans for 10 more next year.

The new branches, he says, reaffirm the company's plans to penetrate the Texas market. Including the new offices planned for San Antonio, Charlotte-based Wachovia expects to have 113 branches in Texas by the end of next year. ........

........ Wachovia and other lenders are attracted by San Antonio's healthy economy and solid population base, he says. "I think that's why you're seeing a lot of interest from financial institutions in general coming into the city."

Charlotte Business Journal: Wachovia eyes aggressive growth in San Antonio

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Federal Reserve Senior Economist Keith Phillips projects the Alamo City area job growth will finish the year at 2.2 percent, or a net gain of 16,600 jobs. That's a solid, if not spectacular, rise.

What made 2005 special, however, were the economic development announcements paving the way for job growth. Many American cities would trade their proverbial right arms to duplicate just one of the announcements that dotted San Antonio's business calendar.

Great article looking at the major business annoucements made in 2005 and the jobs that they will bring to the city in the next few years. It's worth checking out.

San Antonio Express-News: [url=http://www.mysanantonio.com/business/stories/MYSA010106.2N.business.110ff37b.html]The Year in Review 2005

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That's great news.

It took a LONG time for San Antonio to break its economic dependency on the civil service / military sector, but I see that it is finally coming. You simply CANNOT become a "major city" without a significant white collar sector. For the longest time, that was doctors, trial lawyers and military officers in San Antonio. Not a good base for growth.

Bringing in talented, well paid people to work in San Antonio will do nothing but stimulate the economy and the real-estate market. Now if only people would stop being so irrational about building places to play golf (Olmos Park just doesn't cut it, sorry).

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Deposits were up 3.8 percent for Bank of America in San Antonio between June 30, 2004 ($3.19 billion) and June 30, 2005 ($3.31 billion). BofA did not add any braches last year, but is looking to continue it's steady growth in SA by adding some in the future.

There are also still rumors that BofA could open up an operations center in the city as well which could bring in about 2,500 jobs.

"I think the early movers in financial services to San Antonio ... opened call centers (or operations centers) because San Antonio offered a large labor force and the cost of opening a business was cheap -- salaries, rents, etc.," Alaniz says. "Those that followed, like BofA is supposed to do, are attracted by those same factors, plus the labor force is now trained for back-office financial services because of all of those early movers -- like Citibank (which operates a service center on the Northwest Side) and Washington Mutual."

San Antonio Business Journal: Bank of America sees fertile ground in S.A. market

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Another article about 2005 being a banner year for job growth in SA.

Last year, 15 companies and the National Security Agency announced plans to expand operations and generate a total of 6,885 jobs, said Mario Hernandez, president of the San Antonio Economic Development Foundation.

"We've never had a year where we've surpassed 4,000 new jobs," Hernandez said.

San Antonio Express-News: 2005 was banner year for Alamo City growth

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A recent study done by Jon Hockenyos of TXP Inc. states that the San Antonio metro area will see a 3.4% increase in employment annually over the next decade, while the population will increase by 2.7%.

TXP's Hockenyos expects economic development in the Alamo City to flourish once the Toyota Motor Manufacturing Texas Inc. plant opens this fall. This will create 2,000 factory jobs and another 2,000 on-site supplier jobs. Fort Sam Houston, because of the latest round of base realignments and closures, expects to gain 13,500 jobs and $800 million in new construction.

The San Antonio area also should see the continued strength of the tourism, aerospace, biosciences and financial sectors.

San Antonio Business Journal: San Antonio market poised for economic expansion until 2015

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Microsoft Corp. has announced that it will build a new data center in San Antonio on a 44-acre site in Westover Hills. The complex will consist of two buildings and is expected to have a value of $550 million. The facility will only provide 75 new high-tech jobs, but is expected contribute greatly to city tax and utility revenues. Construction could begin in the next few months.

The San Antonio City Council on Thursday approved a 10-year, 100 percent tax abatement worth $20.7 million and voted to provide $5.2 million from the CPS Energy economic development fund. That money will pay for electrical infrastructure for a 470,000-square-foot complex that will be nearly as big as the Alamodome.

Microsoft's data center, housing tens of thousands of computers, will be a place "where the Internet lives," said Mike Manos, senior director of Microsoft Data Center Services.

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Wachovia has announced that it will add 327 back office and customer-support jobs to the World Savings Bank call center. Wachovia purchased World Savings parent company, Golden West Financial Corp. last year and should change the name to Wachovia by the fourth-quarter this year. The new jobs are in addition to 300 call center jobs that were announced last month.

San Antonio Express-News: Wachovia announces 300 more jobs for S.A.

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