- President’s Perspective
Robert S. Kaplan
- Texas Facing Historically Tight Labor Markets, Constraining Growth
Texas labor markets have become very tight in recent years following steady post-Great Recession job growth. Labor force expansion, once fueled by migration, has eased, and businesses report that they cannot find sufficient numbers of workers to expand—particularly for middle-skill positions. This has constrained economic growth and pressured wages higher.
- Texas Industrial Building Booms as Economy, Population Grow
Laila Assanie and Michael Weiss
A significant portion of Texas’ recent construction activity has been industrial building, with Dallas–Fort Worth leading the nation and Houston among the top six markets. Burgeoning e-commerce, state population gains and an expanding export market have contributed to the growth spurt that has included increases in transportation and logistics employment.
- Eleventh District Banks Have Performed Well Despite Rising Funding Costs, Nonbank Competition
Kelsey Reichow and Amy Chapel
Profitability picked up for Eleventh District banks in 2018 despite rising funding costs and slowing loan growth. Overall asset quality strengthened, though room for further improvement may be limited. Changes in capital regulation could affect bank risk taking.
- On the Record: A Conversation with Charlie Amato
Texas Economy Remains Strong Despite Challenges
Charlie Amato is chairman and co-founder of Southwest Business Corp. (SWBC), a company with 17 lines of business including insurance brokerage, financial planning, employee benefits administration and mortgage servicing. Amato, who has more than 40 years of experience in all aspects of insurance operations, offers insights into issues the Texas economy faces.
- Spotlight: Mexico’s Fiscal Reform Earns Mixed Reviews
To compensate for the lack of tax collection to fund government, Mexico has depended heavily on its state-owned oil company, Pemex. Thus, when oil production began declining in 2004, fiscal reform gained urgency.
- Go Figure: Texas Graduation Rates Commendable, but State Could Fall Behind
Design: Darcy Taj; Content: Grant Strickler
- Snapshot: Shale Breakevens Anchor Oil Prices
The emergence of U.S. shale production seems to be playing a large role in anchoring long-term oil prices.
- President's Perspective
Robert S. Kaplan
- Position as Top Exporting State Exposes Texas to Shifting Trade Policy
Jesus Cañas and Stephanie Gullo
Texas enjoys a strong position in world trade, benefiting from its comparative advantage in energy-related manufacturing and intermediate goods exports. As the nation’s No. 1 exporting state, Texas faces challenges from shifting trade policies, which tend to erode the cost advantages that benefit the state’s leading sectors globally.
- On the Record: A Conversation with Tom Luce
Civic Leader Seeks to Bolster Texas Attributes by 2036 Bicentennial
Tom Luce, a Dallas attorney, has been involved in a variety of state, federal and civic projects. He played a key role in Texas education reform in the 1980s and served as an undersecretary for education during the George W. Bush administration. He is currently leading Texas 2036, which aims to create a policy roadmap for Texas as it heads toward its bicentennial.
- Lower Oil Prices, Tight Labor Markets to Restrain Texas Growth in 2019
Keith R. Phillips and Judy Teng
Texas’ economy should expand in 2019, though at a slower rate than in the prior year. A decline in oil prices in late 2018, tight labor markets and the possibility of restrictive U.S. trade and tariff policies weigh on the outlook for the state.
- Spotlight: Abundant Sunshine Not Enough to Power Texas Residential Solar Energy
Benjamin Meier and Jesse Thompson
The Texas electricity market doesn’t shine in residential solar energy despite plentiful sunlight. While Texas is No. 1 in wind power, its residential solar capacity per capita was less than one-third that of the U.S. average in 2017.
- Go Figure: Shale Revolution Boosts Texas Refiners’ Competitiveness
Design: Emily Rogers; Content: Jesse Thompson
- Snapshot: Economy Booms in Midland–Odessa
The Permian Basin economy, at the heart of U.S. oil production, has boomed as oil output expanded.