By Bob Mitchell
President, Bay Area Houston Economic Partnership
As one of Houston’s largest economic development organizations, the Bay Area Houston Economic Partnership has, for more than 44 years, supported businesses in southeast Texas. BAHEP’s Board of Directors, and its more than 270-member companies, strongly encourage Texas elected officials (local, state, and federal) to use all means possible to immediately develop a strong, coordinated, and collaborative back-to-work plan to reopen Texas for business. Further, because of Texas’ strong corporate readiness, its engineering prowess, its ‘can-do’ spirit, and its proven expertise gained from successfully navigating previous crises, Texas is uniquely qualified to lead the rest of the nation in its reopening plans. In addition, Houston business leaders are ready to assist and participate in these planning and implementation phases to create action now toward a positive outcome.
Before we get to the many pressing justifications for a restart, we first want to thank Governor Abbott for the strong leadership he has already exhibited in moving Texas, and the nation, forward. He has been correct to state, paraphrasing, that as goes Texas, so goes the nation. We applaud his efforts to release a ‘return to work’ plan as early as the end of this week.
Texas enjoys America’s second largest state economy and produces more than $1.8 trillion of annual economic output — ranking the Lone Star State as the world’s 10th largest economy. GDP in Texas ranks slightly higher than all of Canada’s GDP of $1.73 trillion. Texas has led the nation in new job creation for the last several years. It is imperative to get Texas’ massive economic engine back to full production as soon as possible.
Closer to home, any lingering daily decline resulting from a continuing business shutdown undoubtedly will bring down the Houston area’s total economic output for 2020. Economic data and forecasts present an increasingly grim outlook for Houston. A new Moody’s Analytics analysis commissioned by the Wall Street Journal provides one measurement of the economic damage being inflicted on Houston. The analysis, published April 2, indicates business closures in Harris County — which represents two-thirds of the region’s population — have caused a 27 percent drop in the county’s daily economic output.
The back-to-work plan needs to be aggressive, and yet safe for Texas workers, customers, healthcare suppliers, and citizens. It must balance the necessary need for action with the safety and well-being of every Texan.
This is just the kind of challenge to which Texans have always risen — we can create and execute such a plan. We must take bold action NOW before the harm resulting from the COVID-19 cure (national economic shutdown) becomes worse than the disease itself.
