Global city

Houston sees boom of foreign investment and exports over the past decade

A new report from the Greater Houston Partnership found that Houston saw over $33 billion in foreign investments over the past 10 years. Photo by Scott Halleran/Getty Images

Throughout the past decade, over 500 foreign-owned companies from 36 countries have planned investments in Houston. The investments are spread across more than 600 deals within 63 industries in Houston. Adding up the amount of disclosed valuations, the total exceeds $33 billion.

The city has a lot to offer these companies from all over the world, says Greater Houston Partnership's senior vice president of research, Patrick Jankowski, in a release.

"These foreign-owned companies came to Houston for a variety of reasons, from being closer to their clients to establishing a beachhead for entering the U.S. market," Jankowski says in the release.

The information is compiled in the new Global Houston report from the GHP that analyzes data on foreign investment over the past decade. The research shows that now

The foreign investment movement greatly impacts the local economy, Jankowski adds.

"It infuses new capital into the region, expands the manufacturing base, helps underpin jobs, facilitates the exchange of ideas and best practices, increases trade, adds to the tax base and stimulates growth," he says.

Aside from the investments, the report found that locally, more than 2,500 Houston manufacturing firms have their hands in global trade. Around 17.3 percent of Houston's economy is related to exports, which amounts to double than what was recorded in 2003, according to the Brookings Institution. The Bayou City regularly leads the nation in exports, such as oil field services, refined products, chemicals, and fabricated metals.

The report also took into account Houston's diversity, which has also evolved over the past 10 years. About one in four residents are born outside the country, and a third of the population growth is attributed to immigrants — who account for 390,000 of the city's new residents. In 2017 alone, foreign-born Houstonians made up almost a third of the total GDP of Houston, or $142.1 billion.

"Over the last couple of decades, Houston's economy has become more diversified," says Bob Harvey, GHP president and CEO, in a news release. "We've surged beyond traditional oil and gas to include a burgeoning energy tech and renewables industry, a thriving life sciences and healthcare sector, and a robust advanced manufacturing ecosystem. And in that time, as this report shows, Houston's trade and investment ties with the rest of the world have grown as well. These global connections are essential to our long-term success."

In 2018, Houston's top five trade partners all increased activity. The top countries are, Mexico ($24.6 billion in 2018, compared to $20.1 billion in 2017), China ($20.3 billion, compared to $18.8 billion in 2017), Brazil ($12.9 billion, compared to $12.6 billion in 2017), The Netherlands ($10.4 billion, compared to $8.6 billion in 2017), and South Korea ($10.3 billion, compared to $6.8 billion in 2017).

By the numbers

Here are some key findings from the report.

  • The Houston/Galveston Customs District handled 289.2 million tons of cargo in 2018, or 33,000 metric tons every hour.
  • The Houston/Galveston Customs District ranked first in the nation in foreign tonnage handled and 7th in the nation by dollar value in 2018.
  • The three ports of Houston, Galveston and Freeport support 343,525 jobs, according to a report from Martin & Associates and Texas A&M University
  • Of Houston's 1.6 million foreign-born residents, 39.8 percent are naturalized (i.e. U.S. citizens). That's up from 32.3 percent a decade ago.
  • Latin America leads among regions of origin for Houston's foreign-born population with 1.02 million people in 2017, up 42 percent from 2008. Asia follows at 409,395, up 37 percent and Africa with 95,017, a 14 percent increase.

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Building Houston

 
 

This health tech company has made some significant changes in order to keep up with its growth. Photo via Getty Images

With a new CEO and chief operating officer aboard, Houston-based DataJoint is thinking small in order to go big.

Looking ahead to 2022, DataJoint aims to enable hundreds of smaller projects rather than a handful of mega-projects, CEO Dimitri Yatsenko says. DataJoint develops data management software that empowers collaboration in the neuroscience and artificial intelligence sectors.

"Our strategy is to take the lessons that we have learned over the past four years working with major projects with multi-institutional consortia," Yatsenko says, "and translate them into a platform that thousands of labs can use efficiently to accelerate their research and make it more open and rigorous."

Ahead of that shift, the startup has undergone some significant changes, including two moves in the C-suite.

Yatsenko became CEO in February after stints as vice president of R&D and as president. He co-founded the company as Vathes LLC in 2016. Yatsenko succeeded co-founder Edgar Walker, who had been CEO since May 2020 and was vice president of engineering before that.

In tandem with Yatsenko's ascent to CEO, the company brought aboard Jason Kirkpatrick as COO. Kirkpatrick previously was chief financial officer of Houston-based Darcy Partners, an energy industry advisory firm; chief operating officer and chief financial officer of Houston-based Solid Systems CAD Services (SSCS), an IT services company; and senior vice president of finance and general manager of operations at Houston-based SmartVault Corp., a cloud-based document management company.

"Most of our team are scientists and engineers. Recruiting an experienced business leader was a timely step for us, and Jason's vast leadership experience in the software industry and recurring revenue models added a new dimension to our team," Yatsenko says.

Other recent changes include:

  • Converting from an LLC structure to a C corporation structure to enable founders, employees, and future investors to be granted shares of the company's stock.
  • Shortening the business' name to DataJoint from DataJoint Neuro and recently launching its rebranded website.
  • Moving the company's office from the Texas Medical Center Innovation Institute (TMCx) to the Galleria area. The new space will make room for more employees. Yatsenko says the 12-employee startup plans to increase its headcount to 15 to 20 by the end of this year.

Over the past five years, the company's customer base has expanded to include neuroscience institutions such as Princeton University's Princeton Neuroscience Institute and Columbia University's Zuckerman Institute for Brain Science, as well as University College London and the Norwegian University of Science and Technology. DataJoint's growth has been fueled in large part by grants from the U.S. Defense Advanced Research Projects Agency (DARPA) and the Brain Research Through Advancing Innovative Neurotechnologies (BRAIN) Initiative at the National Institutes of Health (NIH).

"The work we are tackling has our team truly excited about the future, particularly the capabilities being offered to the neuroscience community to understand how the brain forms perceptions and generates behavior," Yatsenko says.

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