Pierpont Communications, Inc.

"San Antonio: A Perfect Fit for Pierpont"

December 02, 2008

Eric Whittington spent the past 20 years in San Antonio working in communications strategy, marketing, public relations and public affairs. He joined Pierpont Communications as a Vice President in late 2008 to launch Pierpont's San Antonio operations, expanding Pierpont's presence from Houston, Austin and Dallas. Below, Eric discusses why he is optimistic about the future of America's seventh largest city.

I've seen miles and miles of Texas at all points on the compass, but San Antonio has been home to me since 1988. The biggest small town in the state has enjoyed a great ride lately, like most of Texas. And despite current worldwide economic problems beginning to seep into our great state's consciousness, there are still many good reasons to be excited about San Antonio's prospects for the future. Here are my Top 10:

• A diverse economy -- Some well-known corporate names were born here or nearby (HEB, Valero, Frost Bank, USAA), but San Antonio's bread and butter is a highly diverse, small-business-based economy. That's why a graphic depiction of the local economy looks like gentle swells on a placid ocean compared to the Richter-scale gyrations of many other big cities whose economies are concentrated in one or two major sectors.
• Back in BRAC -- "BRAC" used to be the most hated word one could hear in San Antonio because it meant the end for Kelly Air Force Base, which had been a powerful job generator here in "Military City USA" for decades. Base Realignment and Closure Commission (usually abbreviated as "BRAC") has a much happier meaning for San Antonio these days: $1.6 billion in federal dollars being invested in Fort Sam Houston in a massive overhaul of the base that will see it add almost 5,000 jobs and 9,000 additional students in various medical disciplines by 2011.
• Beep beep! -- The University of Texas at San Antonio, home of the Roadrunners, is growing fast. Currently with a student population of about 28,500, UTSA is the second largest institution in the University of Texas system. In the past 10 years, research funding has grown from just over $19 million to almost $50 million. The university plans $265 million in new construction over the next four years, including $82 million for a new College of Engineering, where enrollment has grown more than 90 percent in six years. And new doctoral programs are being added as UTSA pursues premier research institution status.
• Born on the bio -- Few realize, even among those who live in San Antonio, that healthcare and biosciences form the largest sector of the city's economy, not tourism or the military. The South Texas Medical Center continues to grow, fueled by the University of Texas Health Science Center at San Antonio. Overall, one in seven San Antonians works in health care or biosciences and the industry has grown by more than 23,000 jobs in the past 10 years, currently generating $16.3 billion in annual economic impact.
• The River Walk -- It seems every city in America is planning some version of a river walk or has already built one. From Jenks, Oklahoma to Fort Lauderdale, Florida to Reno, Nevada and Naperville, Illinois, everybody is getting in on the action. Nothing against those fine places, but let's face it: There's only one River Walk and everything else is just water and sidewalks.
• What real estate crisis? -- San Antonio's median home price dipped 1 percent in October compared to a year earlier. Not bad considering the 11.3 percent drop nationwide or the 5.8 percent drop in the Southwest region. That's partly because local home values didn't rocket to absurdly unsustainable levels over the past few years. On the other hand, home foreclosures are up 23 percent in Bexar County this year, but that's half the nationwide increase.
• We've got the power -- One big factor in corporate expansion or relocation decisions is power availability and affordability. Microsoft's new $550-million data center on the city's West Side, for example, requires up to 50 megawatts of power, or 67 percent more than Toyota's enormous plant in South Bexar County. But the City-owned CPS Energy is well known for maintaining an 18-20 percent surplus of power availability, industrial rates well below the national average and below other major Texas cities, plus outstanding reliability. All of which bodes well for attracting other big players to San Antonio.
• The hunger -- Attitude as much as anything else has driven San Antonio's success over the past 15 years. The city's civic and business leaders are for the most part very eager to do whatever it takes to grow the local economy by bringing new business to town. Just below the surface, a lot of San Antonio business people are tired of their town being seen as just a tourist destination and not a serious business center. That chip-on-the-shoulder mentality will be a big advantage in getting through the current worldwide financial crisis.
• The price is right -- Besides low-cost power, land is relatively inexpensive and is abundantly available in the San Antonio area. Labor costs are generally lower here than in many other areas, too, and affordable housing is plentiful, running about 25 percent below the national median cost. For companies looking to expand or relocate, such cost savings can be very attractive.
• Disaster-free zone -- The Gulf Coast has its hurricanes, north Texas has its hail and tornadoes, and other big American cities face disasters ranging from wildfires to earthquakes to blizzards. Not so much in San Antonio. Yes, it's scorching hot here in the summer, and our frequent droughts do have a curious tendency to end with torrential downpours. But rarely do local businesses have to stop operations due to natural disasters. Another reason companies will continue to look at San Antonio for expansion and relocation opportunities.