DATA POINTS

www.datapoints.org APRIL 2013

Most Recent Monthly Data Current

www.capcog.org
Previous Month MoM YoY

VITAL SIGNS
Unemployment returned halfway to its January level Single-family permits dropped expectedly, though still more than 33% higher than the same period last year Multifamily permits doubled to more than 2,300 units, a phenomenal increase for the region Sales tax and patents dropped modestly Capital-area stock declined in March, with ongoing buyout talks at Dell contributing to volatility

Unemployment Rate Employment Growth

(Feb.) (Feb.) (Feb.)

5.4 7,885 695 2,374

5.8 -4,593 706

-6.9% -11.5% 0.9% -2.0% 3.9% 33.4%

Bldg. Permits Single-Family Bldg. Permits Multifamily Sales Tax Receipts Patents Awarded
(Feb.) (Mar.)

(Feb.)

1,183 100.7% 180.9% -19.9% -6.5% 12.3% 8.5%

$27,831,245 $34,724,791 275 294

CAPTEX Stock Index I

CAPTEX Stock Index II

(April 1)
(April 1)

140.02
208.37

162.01 -13.57% -13.64%

214.84 -3.18% -10.4%

Dive deeper into the data at DataPoints.org for sources, notes and other information.

IN FOCUS: Wine, Beer and Spirit Production in the Capital Area

As the Texas Legislature charges through its current session, one issue has caught the eye of lawmakers, entrepreneurs and happy hour-goers alike. With noticeable growth that is likely to continue, Texas craft brewers, distillers and wine makers are causing many to evaluate state and local policies that shape the competitiveness of the industry. With more wineries, distilleries and breweries per county than any other region in Texas, the 10-county CAPCOG region is in a particularly strong position to benefit from the growth of this industry. Based on the number of permits issued by the Texas Alcoholic Beverage Commission, the capital area is home to 18.6 percent of the states wineries, breweries, and distilleries. The Texas Hill Country has gained a reputation as the states premier location for the wine enthusiast, with more than 25 wineries found in Blanco, Hays and Travis counties alone. Vineyards can serve as a key tourism driver within rural locations. And though not necessarily huge centers of employment, they can be a highly effective way to rebrand or promote the surrounding community or region. Despite the currently small share of overall employment supplied by wineries, breweries and distilleries in the Capital Area, this industry can have an outsized impact on the local economy. According to data from EMSI, each job created by a business in this industry, generates approximately five additional jobs within the region. This places wineries, breweries and distilleries among the top 1 percent of industries based on their job multiplier.

Wineries, Breweries and Distilleries by County

14 12 10 8 6 4 2 0

Wineries
6 1 1 11

Breweries
9

Distilleries

13 8 7

5
1 1 2 1

4 2 0

Source: TABC

Total Wineries, Distilleries and Breweries in the Capital Area

7
Wineries

15 46

Distilleries Breweries
Source: TABC

Licensed Brewers in Texas

100 75 50 25 Licenses Statewide

78

35

37

40

52

2007

2008

2009

2010

2011

Source: Texas Craft Brewers Guild

DATA POINTS
www.datapoints.org APRIL 2013 www.capcog.org

IN FOCUS: Wine, Beer and Spirit Production in the Capital Area (continued)
In many rural locations, wine production is being turned to not simply for the value of the crop, but also as a hedge against drought and seasonality. In fact, while the production of wine grapes still requires some water to support a healthy yield, periods of low precipitation actually produce a higher quality of wine, due to the concentrated flavor generated by grapes that contain less water. During seasonal drops in production, wineries can supplement their operations through tourism. However, the success of wine tourism in rural locations can often be determined by the readiness of the surrounding community or region to act as an active partner in luring visitors. Urban neighborhoods in the capital area are also finding opportunity in the production of craft beers and premium liquors. A brewery or distillery that caters to local or specialty markets can easily fit into small urban footprints and often utilize repurposed or inactive warehouse space, which can go a long way toward the revitalization of urban neighborhoods. The well-established trends supporting the growth of craft beers and liquors draw upon many of the same demographic and creative assets that have spurred growth in other industries in the capital area and may, in fact, be mutually supportive. Bolstered by growing interest in sourcing produce and other goods locally, the industry surrounding the production of wine, beer and liquor presents an appealing opportunity for economic development in the region.

SPOTLIGHT ON: Bastrop County

Each month, Data Points will highlight economic development in one of the capital areas 10 counties.

Bastrop County has recently initiated a new, innovative approach to combining economic development with environmental protection and recovery. Recent wildfires, drought and wind storms have left the county with the major challenge of clearing large amounts of burnt and broken timber in order to manage related debris and reduce the risk of additional wildfire. Ordinarily, this type of activity would come at great expense to the county and its residents. Bastrop County, however, has found a way to support the cleanup and simultaneously boost the local economy. In partnership with Go Green International, a private company that specializes in harvesting trees for biomass, residents now have the option of having their dead trees and excess undergrowth collected for conversion to a source of green energy. As a result, Go Green International has committed to an extended presence in the county to support its operations. Timber and forest undergrowth can be an easily overlooked source of biomass. The production of pellets using these materials is a growing segment of the clean energy industry, and one that is finding a particularly warm reception in the South. Bastrop County is demonstrating how even the damages caused by natural disaster can be leveraged for economic development in a way that supports recovery from that natural disaster. Communities that seek similar approaches to pairing economic development with other important issues such as fiscal management, neighborhood revitalization or environmental protection can find that the impact is multiplied significantly. Doing so requires economic developers to look for these opportunities and to collaborate with professionals in other fields who might be able to help them make it happen. Source: Bastrop County, Go Green International, Bastrop Adviser

ABOUT CAPCOG ECONOMIC DEVELOPMENT

CAPCOGs Economic Development Program works closely with cities, counties, chambers of commerce and economic development corporations of the Texas capital area, providing education, training and expert assistance. Services include providing in-depth economic analysis, managing special projects related to regional planning and economic strategy and helping communities devise new strategies for improved competitiveness. To discuss specific projects or available services, contact Program Manager Michael Hennig at mhennig@capcog.org.