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SummaryofEconomicTrends&KeyFindings <br />LaPortehasgrownsteadilyoverthepasttwodecadesbyweatheringstatewideeconomic <br />downturnsinnaturalresourceindustries,thehightechsectorcollapse,andrealestate <br />bubbles.TheĭźƷǤ͸ƭstrongmanufacturingbase,proximitytothePortofHouston,andshort <br />commutetoIƚǒƭƷƚƓ͸ƭcentralbusinessdistricthavehelpedbufferthesedownturns.The <br />highpercentofresidentswhoworkthroughoutgreaterHoustonandbringwagesbacktoLa <br />Portealsomitigatetheeffectsoflocalemploymentforces.Thecurrenteconomicrecession, <br />however,willhavenegativeconsequencesforLaPorte.Reducedinternationaltradeand <br />plummetingoilpriceswillinfluencelocalbusinessdecisions.TXPbelievesanumberofkey <br />factorswillhelpshapetheğƩĻğ͸ƭeconomiclandscapeandfutureeconomicdevelopment <br />strategies: <br />Overthenextfiveyears,LaPortebasedemploymentwillstruggletogrowaslocal <br />firmsadjusttothenationalrecession.LatƚƩƷĻ͸ƭindustrialbaseisheavilydependent <br />onthesectorshithardduringthiseconomicdownturn:oilrefineries,petrochemical <br />manufacturers,andtheconstructionbusiness. <br />Despiterecentfluctuations,theoilandgassectorwillremainthedominantforcein <br />theLaPorteeconomy.Thissectorisresponsiblefor30to40percentoftotalLaPorte <br />businessesoutput.Foranumberofreasonsincludingexistingcapitalinvestment, <br />difficultyinrelocatingoperations,andlongtermconsumerdemand,themajorityof <br />thesefirmswillreboundoncethenationaleconomystartstogrow. <br />LatƚƩƷĻ͸ƭproximitytothePortofHoustonandtransportationinfrastructurewill <br />causefuturegrowthinthewarehousingsector.ThesuccessfulbuildoutofthePort <br />CrossingCommerceCenteroverthenext10yearswillbeamajordriverofthelocal <br />economy.Thispropertyalonecouldsupport4millionsquarefeetofbuildingspace <br />whenfullydeveloped.Increasedtrafficcongestionmightcreateissues,butthis <br />ƭĻĭƷƚƩ͸ƭgrowthwillhelpdiversifythelocaleconomy. <br />Limitedretailtradeopportunitiesresultinsalestaxleakagestosurrounding <br />communities.LaPorteisseverelyunderservedwhenitcomestoretailopportunities. <br />Cityleadersandcommunitystakeholdersareworkinghardtoaddressthisissue.La <br />tƚƩƷĻ͸ƭlimitedretailsectoralsomeansitsgeneralfundwillnotdeclineasmuchas <br />communitiesdependentonhouseholdspendingfortaxrevenue.Thisprovidesthe <br />citytimetorefineitsrecruitmentstrategywhileretailersmodifybusinessplansto <br />adjusttotheslowingeconomy. <br />1 <br />| <br />City of La Porte, Texas - Economic & Demographic Assessment January 2009 <br /> <br />