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<br />Summary of Economic Trends & Key Findings <br />La Porte has grown steadily over the past two decades by weathering statewide economic <br />downturns in natural resource industries, the high-tech sector collapse, and real estate <br />bubbles. The city's strong manufacturing base, proximity to the Port of Houston, and short- <br />commute to Houston's central business district have helped buffer these downturns. The <br />high percent of residents who work throughout greater Houston and bring wages back to La <br />Porte also mitigate the effects of local employment forces. The current economic recession, <br />however, will have negative consequences for La Porte. Reduced international trade and <br />plummeting oil prices will influence local business decisions.TXPbelieves a number of key <br />factors will help shape the area's economic landscape andf!iture economic development <br />strategies: <br /> <br />· Over the next five years, La Porte-basecf employment will struggle to grow as local <br />firms adjust to the national recession.Ja Porte's industrial base Kheavily dependent <br />on the sectors hit hard during this econOmic downturn: oil refinerieS~ petrochemical <br />manufacturers, and the construction business. <br /> <br />· Despite recent fluctuations,~e oilqncf gas sector will remain the dominant force in <br />the La Porte economy. This sector is responsible for 30 to. 40 percent of total La Porte <br />businesses output. For a numbefof reasons including existing capital investment, <br />difficulty in're10cating'pperations,and 10ngzfEm'11 consumer demand, the majority of <br />these firm~,~iU reboun~pnce the na!io!1al economy starts to grow. <br /> <br />· f.crPgrte's proximity to the Port afHouston and transportation infrastructure will <br />cause futu!f!!JrowtH'Qt/)e warehbLisiogsector. The successful build out ofthe Port <br />Crossing CorTlflierce Cent~r qver the next 10 years will be a major driver of the local <br />economy. This property alon~, equid support 4 million square feet of building space <br />wf:!enfully developeqr Increased traffic congestion might create issues, but this <br />sector's growth will help diversify the local economy. <br /> <br />· Limited retail. trade opportunities result in sales tax leakages to surrounding <br />communities. LeI' porte is severely underserved when it comes to retail opportunities. <br />City leaders and community stakeholders are working hard to address this issue. La <br />Porte's limited retail sector also means its general fund will not decline as much as <br />communities dependent on household spending for tax revenue. This provides the <br />city time to refine its recruitment strategy while retailers modify business plans to <br />adjust to the slowing economy. <br /> <br />City of La Porte, Texas - Economic & Demographic Assessment I January 2009 <br />