guest column

Clutch City: Is 2020 a time of devastation or doubling down for Houston?

Houston has proven to be resilient time and time again. In a guest column, Amy Chronis explores if 2020 has the potential to be Clutch City's breaking point. Photo via Pexels

"Clutch City" may be Houston's most befitting nickname — and it has proven to stand the test of time. Whoever coined the term likely had no idea in how many ways this moniker would be tested and upheld over the next 20-plus years.

Time and time again the fourth largest city in America has proven to be resilient, whether it be a natural catastrophe, tough economic times or the global pandemic. But, will the multi-dimensional stresses of 2020 break the city's winning streak?

Houston is also well known for being The Energy Capital of the World, a qualifier that has meant record revenue and jobs growth, as well as weathering several oil and gas economic down cycles. While the city has taken many hits from previous downturns, it has always been able to recover. The oil, gas and chemicals downturn of 2020, however, is unlike anything we've ever seen before — and could fundamentally transform the energy industry, as well as Houston's economy.

This year, the industry has been grappling with the energy transition while it is also is facing the "Great Compression," sustained low oil prices on top of diminished oil demand from the global pandemic, and the "Great Crew Change." The confluence of these simultaneous challenges could have profound impacts on the workforce and future of work in the oil, gas and chemicals industry. According to Deloitte's latest report, 70 percent of jobs in the industry lost during the pandemic may not return by the end of 2021.

The silver lining "clutch" play may be that Houston already has been on the path and is continuing to diversify its businesses, even within the energy and industrial sectors. The Greater Houston Partnership touts Houston's key industries beyond energy, including advanced manufacturing, aerospace and aviation, life sciences and biotechnology, digital technology and transportation and logistics. Notably, the common thread linking these industries is the need for greater digitalization of and within business models.

The encouraging news is that Houston has anticipated this need and factored it into its future planning. For example, the development of Ion Houston is designed to be the anchor of a 16-plus acre Innovation District in Houston dedicated to innovation, entrepreneurship and technology. This could be the type of investment the city needs to focus on as we grapple with a hard-hit economy. At this point, it is beyond choosing to prioritize moving to what's been called Industry 4.0 — digitalization should be a priority for companies wanting to survive and stay competitive.

According to an analysis conducted by the Greater Houston Partnership of the largest Texas cities, the following sectors had the most VC deals in technology over the last 20 years: life science, oil and gas, oncology, B2B payments, infrastructure and FemTech. The analysis also showcased the top niche tech specialties outside of oil and gas spanned multiple industries including life sciences, legal, space, environmental and FinTech. Houston's dual effort of industry diversification and focus on digitalization has been prescient.

COVID-19 has further accelerated the importance for companies across sectors to get on the fast track to Industry 4.0. The time for transformation is now. The oil, gas and chemicals sector, as well as all sectors, should start building a workforce for the future in order to survive and break the barriers to entry to Industry 4.0. This effort typically includes attracting people across generations by promoting sustainability, offering new digital ways of working, making flexible/remote working a permanent reality while building a sense of pride amongst the workforce toward the work product and organization itself.

Organizational agility is one way through this downturn. Challenging traditional ways of thinking and functioning will likely be required for companies to remain competitive.

The advance work and planning Houston has undertaken to diversify its economy by expanding its industries and focusing on digitalization and the future of workforce, together may ensure that we keep Houston strong and that the "Clutch City" lives up to its name.

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Amy Chronis is the Houston managing partner at Deloitte.

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Building Houston

 
 

These fast-growing companies have new personnel announcements to share. Photos courtesy

Three Houston startups have new hires they're excited about.

From new board members to c-level execs, here's who's moving and shaking in Houston innovation.

GoExpedi names senior vice president of sales

Michael Hanes will focus on sales at fast-growing GoExpedi. Photo courtesy of GoExpedi

E-commerce and supply chain company, GoExpedi, which is focused on transforming procurement for industrial and energy maintenance, repair and operations, has announced named a new executive.

Michael Hanes has been onboarded as senior vice president of sales. Hanes has over 20 years of experience in startups and emerging technologies. Most recently, Hanes worked at Heart Rhythm Society as its director of corporate relations.

"There are very few leaders that have the same level of sales experience and the diverse industry background as Michael. He is an outstanding addition to our team, as he's already started to build fruitful relationships with customers and partners, who are embracing change through the adoption of our interactive intelligence platforms," says Tim Neal, GoExpedi CEO, in a news release.

"Michael has also begun establishing a strong rapport with all of our sales leaders across the country, helping to further sharpen our processes and accelerate the growth of our already robust sales pipeline," Neal continues. "He will be instrumental for the expansion of our customer base and overall success."

Last fall, GoExpedi raised $25 million in a series C investment round in order to keep up with growth and demand.

"I am thrilled to join GoExpedi. What Tim and his team have built in just a few short years is nothing short of remarkable," says Hanes in the release. "Driving the sale of a truly innovative technology -- with the support of a deeply talented team of sales professionals -- is an amazing position to be in.

"I look forward to introducing fresh perspectives and bringing energy to further enhance our sales processes and market presence and accelerate the company's already fast-paced growth trajectory."

The Postage announces new board of directors member

Former startup CFO and venture capital adviser is joining a Houston tech company's board. Photo via liveoakvp.com

Lynn Atchison has joined the board of directors for Houston tech company The Postage, a full-service digital platform and mobile app for afterlife planning.

Based in Austin, Atchison most recently served as CFO at Khoros (née Spredfast) and also previously worked at HomeAway Inc. as CFO as well. She currently serves on other tech boards, such as Absolute Software, Bumble, Q2 Technologies and Convey, as well as being an advisory partner at LiveOak Venture Partners.

"As evidenced by her impressive experience, Lynn thrives when working with transformational and fast-growing companies, making The Postage a perfect fit," says Emily Cisek, CEO and co-founder of The Postage. "She has scaled operations, driven growth and improved profitability for companies in all lifecycle stages. We are absolutely thrilled to welcome Lynn to The Postage team."

The Postage launched last fall as a way to help simplify afterlife planning. Cisek was inspired to create her tech solution after she lost three family members back to back. This month, the company announced its new app.

During her time at HomeAway, Atchison oversaw more than 20 acquisitions and global expansions before the company went public in 2011 before being acquired by Expedia in 2015 for $3.9 billion.

"Throughout my career, I've worked with companies that redefined and established markets, ultimately becoming leaders in their respective industries, which is what I hope to do at The Postage," said Atchison. "Addressing the challenges associated with end-of-life planning is an exciting opportunity that I can personally relate to. I recently experienced a loss in my family, and I know there is something special about this idea. The Postage creates security of all users by ensuring that their families are taken care of after they pass."

Innowatts appoints new c-level exec

Energy software expert Jeff Wright has joined the globally expanding Innowatts. Photo courtesy of Innowatts

As Houston-based Innowatts continues its global expansion — most recently opening its European Union headquarters in Cork, Ireland, the energy software-as-a-service company has named a new member to its C suite.

Jeff Wright has been named the chief revenue officer of Innowatts. to drive continued expansion in the U.S. and also accelerate its growth globally. Wright was previously the global vice president of GE Digital's Grid Solutions business unit. During his tenure, GE's market position climbed from the No. 5 to No. 1 for its energy control room related software, according to a news release.

"Jeff's career can be summarized as 'Energy Meets Technology,'" says Innowatts CEO Siddhartha Sachdeva in the release. "As Innowatts business and global reach expands, we are grateful to have Jeff joining the company. He is a true energy tech leader who has second-to-none domain expertise across a diverse set of utility functions and operating units."

Wright will lead all aspects of the company's go-to-market initiatives and oversee global sales efforts and marketing channels.

"My passion to help companies disrupt and transform the utility industry aligns squarely with Innowatts' mission," says Wright in the release. "Innowatts is transforming the way energy providers will leverage data and AI to operate. Playing a pivotal role in the growth of the company coupled with driving the resilient and sustainable energy solutions of the future is a career opportunity that I am excited and passionate about. I'm truly delighted to be part of the Innowatts leadership team."

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