Energy Growth Helps Communities Diversify Base
Published Dec 15, 2008
A surge in the East Texas energy business is fueling construction activity in the housing, hospitality and retail sectors.
Oil is an economic mainstay in East Texas, and natural-gas exploration and other new-energy initiatives are fueling growth in retail, restaurant and lodging facilities.
“The commercial sector is alive and well in Tyler,” says Tom Mullins, president and chief executive of the Tyler Economic Development Council Inc. and Tyler Area Chamber of Commerce. “Even our residential sector is still strong. We’re going to set a record again this year in terms of the number and value of building permits we’re issuing, and our retail sales figures have set records every year for the past five or six years.”
In Longview, the local economy continues to outpace the nation’s and the influx of people and new business continues at a steady rate, says Kelly Hall, Longview Partnership president.
Hall says the area’s continued prominence as a retiree destination has meant a growth in health care and other service sectors.
“Retirees strengthen demand, and hence employment, in the health services, housing and consumer industries, and their relatively stable flows of income help insulate the metro area during economic downturns,” she says.
Even if the energy sector slows, other industries will provide a cushion for local economies, something that didn’t happen in the past, notes Mullins.
“We have a very diverse economy now, and our hotel sector is particularly strong,” he says. “We have five or six new hotels either under construction or about to start in Tyler, and those rooms will contribute to the restaurant and retail growth. Most of those rooms will be taken by business travelers and the rest by visitors and conventions, so we’ll be getting stronger in those areas as well.”
Story by Joe Morris
Photo by Todd Bennett
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