03/24/2006: "Congratulations on Significant Success"
Actor George Peppard, who played Col. John “Hannibal” Smith on the 1980s television series, The A-Team, had an expression he would often slyly utter when something worked out just the way he had envisioned it.
The expression? “I love it when a plan comes together.”
Although to date I have not heard Governor Perry or other political or business leaders repeat that sentence, it certainly would not be out of place, especially in light of the special honor the state received earlier this month.
You may recall that back in 2003 the state had fallen from among the top of the list of favorite sites for corporations and companies seeking to expand or enhance their operations. In the early 1990s, Texas had perennially ranked at or near the pinnacle. Its pro-business attitude, skilled workforce, and myriad educational and cultural opportunities had convinced scores of major organizations that the Lone Star State offered special advantages to their operations. The times, however, had changed.
The reputation of Texas as the future home for visionary businesses that once seemed secure had gone awry. Something happened on the way to the zenith. Business development leaders in other states, seeing the success Texas was achieving, began to change their modus operandi. They recognized that in order to encourage industries to seek greener pastures within their boundaries, they would have to offer greater incentives and institute more flexible plans.
Gradually, other states began to experience significant success in these kinds of endeavors. Texas ranked as low as 37th in new manufacturing locations. When the situation reached the level of concern for Texas business officials, it became apparent that the state needed new tools and a better approach if it was going to have success in the competition. That’s when what Peppard might have called “the plan” was conceived.
Prior to the opening of the 78th Legislature in 2003, the governor and other leaders began making concerted efforts to eliminate the state’s disadvantage in attracting new jobs to our state. The result or “the plan” was the creation of the Texas Enterprise Fund (TEF), as well as significant judicial reforms, a restructuring of state recruitment efforts, and numerous other meaningful reforms.
As authorized by the state lawmakers, the TEF initiative provided significant monies to attract new businesses or to assist in the substantial expansion of existing operations. The Fund empowered the governor to respond rapidly and aggressively to close deals in order to bring in companies and create jobs in Texas. Funds were also appropriated to enhance technology and biotechnology and to support various health and disaster relief operations.
Within a year, the state’s economy had been significantly strengthened with positive results achieved in 668 cases of new and expanded facilities. In recognition of this level of success, Site Selection magazine awarded Texas the 2004 Governor’s Cup, the trophy that recognizes the state winner in the competition for business expansion. Criteria for consideration involve projects that result in capital investment of at least $1 million, creation of 50 or more jobs, or an expansion involving over 20,000 square feet of new floor space.
The citation accompanying the award noted that the role of the TEF was a driving force in enabling Texas to enhance the state’s business projects and operations. It was not the first time the state had been so recognized. Texas also received this special honor in 1978, 1980, 1981, 1982, and 1992.
So what were the results in this business competition for 2005? Texas won again—by a 26% increase over its accomplishments of the previous year! The state’s 842 projects for 2005 were well ahead of second place Ohio with 598. With the recent presentation of the 2005 Governor’s Cup, Texas has now won the award more than any other state.
To date, the TEF has played a major role in closing the deal on projects that will create some 37,000 new jobs and add $6.7 billion in capital investments to the state economy. This level of success is unprecedented, and the process has just begun. The new Texas Emerging Technology Fund promises to secure a position in the growth industries of the future for decades to come.
Like George Peppard, I think we can all be glad when a plan comes together.