45,000 NEW JOBS IN AUSTIN IN 2 YEARS...WOW!!!

http://bit.ly/zH4BZc
Economist: Austin area to add 45,000 new jobs in next two years
By Kirk LadendorfAMERICAN-STATESMAN STAFF
Friday, Feb. 24, 2012

Austin's puny job recovery over the past two years will accelerate into faster job growth this year and next, economist Angelos Angelou said in his 26th annual forecast event Thursday.

The CEO of Angelou Economics forecast 45,000 new jobs will be added to Austin's five-county metro area in 2012 and 2013, more than doubling the job expansion of the past two years.

Austin added 12,800 jobs last year, and its growth rate of 1.7 percent trailed other major cities in Texas and the state as a whole, which expanded jobs by 2.3 percent.

The drivers for a stronger economy, Angelou said, will be venture-backed startups, a resurgence of established tech companies, an increase in new residents moving into the region from elsewhere and a stronger real estate development sector.

Austin's economy, Angelou said, is getting its groove back.

"I am optimistic about the forecast because I believe we had a significant recovery in the high-tech sector last year, which will continue. We had a 7 percent increase in our number of high-tech workers, expanding to 101,000 last year," Angelou said. "That is substantial. Those increased payrolls are going to kick in this year and next."

"Venture capital seems to be doing fairly well, and if those trends continue, we should see more small companies being formed. And people are continuing to move to Austin. Population growth last year generated about $1.1 billion to our total personal income."

Those new jobs, Angelou predicts, will drive the local unemployment rate down to 5.6 percent in 2013 from its current rate of 6.3 percent. He forecasts the population will expand during the two years by 88,000 to reach 1.84 million by the end of 2013.

The forecast calls for 14,500 single-family home starts during 2012-13 along with the construction of 8,000 new apartment units. It also calls for increased construction of office space, industrial space and retail space as occupancy rates continue to rise.

Angelou also is bullish on the rise in Austin's entertainment events, including continued growth for the South by Southwest festivals, the Austin City Limits music festival and the city's first Formula One auto race, which is scheduled for November.

"We are going back to being a high-tech town, a fun place to be and a great place to live and do business," he said. "Formula One is going to provide a lot to this region over time, and it will be very successful."

The eventual impact of Formula One could reach $500 million a year to the local economy, Angelou estimated.

Angelou, who runs an economic development consulting business, has been giving Austin economic forecasts since he was hired as an economist with the Greater Austin Chamber of Commerce in 1984.

Angelou's forecast usually has tracked the economy fairly closely over the years. He missed in 2009, the worst year of the latest recession, when he forecast weak growth of just over 2,000 jobs, and Austin instead recorded a net loss of more than 16,000 jobs.

While Angelou was upbeat about the local outlook, Jay Bryson, managing director and global economist for Wells Fargo Securities, gave a more guarded outlook about the national economy.

Low interest rates and strong business balance sheets in the United States should promote more growth, but the economy may be constrained by consumers' focus on paying down their debts, Bryson said.

Wells Fargo expects the nation's gross national product adjusted for inflation will expand by 2 percent this year, which is slightly better than the 1.7 percent growth recorded last year.

Continued low interest rates and strong business balance sheets will enable growth, but the key remains how much of their income consumers devote to spending versus paying down past debts.

Bryson said the United States faces a few big risks, including rising oil prices, which could slow down consumer spending, and the deep problems of dealing with heavy government deficits both in Europe and this country.

The European financial crisis still poses a substantial threat to banks in Europe, he said. If the European debt situation is not worked out, it could cause a "major disruption" for the European financial system, which could lead to tighter credit in the U.S.

"Europe is not over yet and is not going to be over for awhile," Bryson said.

Continued heavy deficit spending in the United States probably won't create an economic crisis in this country this year, but he said the issue needs to be addressed by politicians in the next 18 months or risks could rise dramatically.

Business people who are expanding, Bryson said, should consider not only the best-case economic scenario, but how well their business plans would hold up against those major economic risks.

"Caution is well-advised," he said.

kladendorf@statesman.com; 445-3622

Predicted job growth, 2012-13
Industry New jobs % growth
Education/health services 7,200 7.9%

Leisure and hospitality 7,000 8.1%

Retail trade 6,900 8.2%

Professional services 5,700 5.2%

Construction 4,400 11.3%

Other services 2,800 8.1%

Financial activities 2,800 6.5%

Manufacturing 2,600 5.4%

Government 1,700 1.0%

Wholesale trade 1,700 4.2%

Transportation 1,200 9.2%

Information 900 4.7%

Source: Angelou Economics

Austin Tech Industry salaries see Largerst Jump in Country

Tuesday, Jan. 24, 2012
http://bit.ly/xNZCO3


Bolstered by the current tech boom and a shortage of key talent, average salaries for Austin tech workers rose 12.7 percent last year the biggest jump in the country, according to a new survey.

The average 2011 pay for Austin software and engineering professionals was $89,419, according to Dice Holdings Inc., a New York-based tech jobs website.

Of the top 20 cities surveyed, Austin showed the biggest year-over-year jump in tech salaries, said Tom Silver, a Dice senior vice president.

"You're No. 1, and for technology professionals in Austin, that's a great place to be," Silver said. "There's a reason that companies like Google and Facebook open offices in Austin. They know they'll find some of the most highly skilled, top-notch talent in the country."

The survey comes as some Austin startups say they are struggling to find skilled developers in fast-growing areas such as mobile Web and cloud computing. Silicon Valley and emerging technology centers such as Seattle and Boulder, Colo., are also experiencing a tech labor crunch, which is pushing salaries upwards.

"It's really a function of supply and demand, and because demand is high, employers are going to have to pay up," Silver said.

According to the Austin Technology Council, a nonprofit organization that represents more than 200 local technology companies, several dozen Central Texas companies are recruiting technical talent, including software engineers, data engineers and information architects.

Meanwhile, Silicon Valley companies including Facebook, Google and PayPal are hiring at their offices in Austin.

"Most of us here feel like we could grow faster if we could locate the right talent," said Joel Trammell, who is chairman of the Austin Technology Council and CEO of network storage software startup Cache IQ.

"In the types of businesses we're in, the developers create new products for us to sell," Trammell said. "How fast you can grow is dependent on how many creative types you have."

Nationwide, tech workers saw the largest annual salary growth since 2008, the report said. After two straight years of nearly flat wages, tech professionals' salaries increased more than 2 percent, increasing their average annual wage to $81,327.

In Silicon Valley, tech salaries surpassed six figures for the first time last year, with wages rising 5.2 percent to an average of $104,195. It was the first time since Dice started the survey in 2001 that salaries broke the $100,000 mark.

Austin salaries vary greatly, depending on the size of the company and its ability to raise venture capital.

For senior-level software programmers, annual pay can range from $115,000 to $125,000, said Mark Cunningham, technical recruiter at tech placement agency the Bidding Network in Austin. Workers with highly sought-after skills such as mobile programming can make $130,000 to $150,000 a year, he said.

Cunningham said he recently placed a 25-year-old developer with two years' experience with an established software company expanding its Austin operations.

"They offered $85,000 a year, plus a guaranteed 15 percent bonus and stock options," Cunningham said. "There's a big demand for high-end talent, as well as for those with a few years of experience in the right areas."

By Lori Hawkins AMERICAN-STATESMAN STAFF

..

One more plus for the Austin Economy!

Samsung seeks to borrow for Austin expansion
Tuesday, January 17, 2012, 10:09 AM

Samsung Electronics Co. plans to expand its just completed chip factory operations in Austin, according to a report by Bloomberg new service.

The South Korean electronics giant has asked for proposals from banks to borrow as much as $1 billion to expand production at its factory in Austin, which is one of the largest in North America.

The company had reported in early December that its latest plant expansion, which cost $3.6 billion, was running at full production.

Samsung’s Main Fab in Austin produces both flash memory and low-processor chips, including those made for Apple Inc.’s portable devices, including smart phones and tablets.

Apple is the largest customer for Samsung’s chip business, which is the second largest in the world. And sales of Apple smart phones and tablets have expanded enormously in the past year.

And many of Samsung’s own mobile devices also use low-power processor chips similar to those made in Austin, where the company employs 2,400 workers.

The Korean company may almost double spending on its logic- chip business, which oversees manufacturing of Apple’s A4 and A5 processors, to a record 8 trillion won this year, said Shin Hyun Joon, a Seoul-based analyst at Dongbu Securities Co.

Operating profit at the business probably more than doubled in 2011 and may increase 82 percent this year, according to Korea Investment & Securities Co.’s estimate, the Bloomberg report said.

2010 SCHOOL RATINGS are in. Lots of A+ grades for Austin Area Schools

At 1:00 pm on the 31st of July I was glued to the Texas education agency website as they released the latest campus accountability ratings for Texas public schools. Professionally, in that as a Realtor my clients seem to appreciate it when I can speak intelligently on the quality of the public schools in any given neighborhood.

As a Cedar Park resident and with many of my clients in the Leander ISD and Round Rock ISD I was go pleased to see that most of the area elementary schools were rated exemplary and now several of the local middle schools had increased in rating. Just one more reason why AUSTIN TEXAS is the place to buy real estate...

To see the 2010 accountability ratings click the following link: http://www.tea.state.tx.us/ or call me and I will gladly get you a brochure with all the school ratings. Until next time, STAY COOL!

Wow, this article says it all & Austin is THE place to buy a home.

Five Smart Reasons to Buy a Home Now
RISMEDIA, July 30, 2010--The economy is stabilizing. Home prices are holding. It's not just as good a time as ever to buy a house. It's one of the best times ever.

ForSaleByOwner.com presents five overlooked reasons why now is a great time to buy a house.

1. Low mortgage rates serve as an equity shock absorber. When buyers borrow at today's record-low rates, they start building equity as soon as they close. That means they have a little give to absorb a few ups and downs as the still-recovering housing market gains traction.

2. Houses are in move-in condition. Homeowners have continued to spend on maintenance and repair, according to the Harvard Joint Center on Housing. Homeowners who have been holding back kept their houses in good shape while they waited. As those houses enter the market, they are in marked contrast to tattered foreclosures.

3. Terrific houses are coming on the market. Foreclosures are finally starting to clear the system – and this is just the opportunity that owners of many desirable properties have been waiting for.

4. Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines...again. Now that appraisers have more flexibility to set values that reflect the current market, today's deals will make it over the finish line.

5. Plenty of programs. Homes are more affordable than they have been for years, but communities have stuck by "workforce housing" programs that encourage middle-class families to buy houses. Buyers who qualify can get a big boost by combining one of these programs with today's low mortgage rates.

Austin is recession-resistant

Austin ranked the third most Recession-Resistant city by the
Brookings Institute

In April of 2008, Austin was ranked the third most recession proof
city by Forbes because of a lack of a housing bubble, low median home
price, low unemployment, and strong job growth segments that would
recover more quickly. Plus, Austin was known as ?Silicon Hills? for
its growing tech sector industries.

Now, over two years later, the Brookings Institute has released their
quarterly in-depth analysis which also ranks Austin the third most
recession proof city in the U.S.

The Brookings Institute analyzes the health of America?s 100 largest
metropolitan economies. It examines trends in metropolitan-level
employment, output, and housing conditions to look ?beneath the hood?
of national economic statistics to portray the diverse metropolitan
trajectories of recession and recovery across the country.
MetroMonitor looks at the particular industries that drive national
economic trends, and takes into account metro areas? unique starting
points for eventual recovery.

Click here for the full report.
http://www.brookings.edu/metro/MetroMonitor.aspx

You can also view many interactive reports for employment, REO
properties and other economic measurements.


The top 10 stable cities identified by MetroMonitor are:

1. Albany, N.Y.
2. Augusta, Ga.
3. Austin, Texas
4. Baton Rouge, La.
5. Buffalo, N.Y.
6. Columbia, S.C.
7. Dallas, Texas
8. Des Moines, Iowa
9. El Paso, Texas
10. Honolulu