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

guest column

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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Pharma giant considers Houston for $1B manufacturing campus

in the works

Another pharmaceutical giant is considering Houston’s Generation Park for a manufacturing hub.

According to a recent filing with the Texas Jobs, Energy, Technology and Innovation (JETI) program, Bristol Myers Squibb Co. is considering the northeast Houston management district for a new $1 billion multi-modal pharmaceutical manufacturing campus.

If approved, the campus, known as Project Argonaut, could create 489 jobs in Texas by 2031. Jobs would include operations technicians, engineering roles, administrative and management roles, production specialists, maintenance support, and quality control/assurance. The company predicts annual average wages for these positions to be around $96,000, according to the filing.

The project currently includes the 600,000-square-foot facility, but according to the filing, Bristol Myers Squibb “envisions this site growing in scale and capability well beyond its opening configuration."

The Texas JETI program offers companies temporary school property tax limitations in exchange for major capital investment and job creation. E.R. Squibb & Sons LLC applied for a 10-year tax abatement agreement in the Sheldon Independent School District.

The agreement promises a $ 1 billion investment. Construction would begin in 2027 and wrap in 2029.

“The proposed project reflects [Bristol Myers Squibb Co.’s] enduring commitment to bringing innovative medicines to patients and ensuring the long-term supply reliability they depend on,” the filing says. “The proposed project is purpose-built to support and manufacture medicines spanning multiple therapeutic areas and modalities, positioning the site as a long-term launch and commercial campus for decades to come. These medicines will provide therapies to the [Bristol Myers Squibb Co.’s] patients located in markets both nationally and internationally.”

The Fortune 100 company is considering 16 other cities for the new manufacturing facility in the Central and Eastern markets in the U.S. According to the Houston Chronicle, Bristol Myers Squibb Co is still in the “evaluation process” for its potential manufacturing site.

Last fall, Eli Lilly and Co. selected Generation Park for its $6.5 billion manufacturing plant. More than 300 locations in the U.S. competed for the factory. Read more here.

Houston health tech co. lands NIH grant for AI cancer prediction tool

fresh funding

Houston-based CellChorus and Stanford Medicine were recently awarded a Phase I Small Business Innovation Research grant for the company's AI platform to test how certain cancer patients will respond to therapies.

The funding comes from the National Cancer Institute of the National Institutes of Health. According to a filing, the grant totaled just under $400,000.

CellChorus, which spun out from the University of Houston’s Technology Bridge, has developed TIMING (Time-lapse Imaging Microscopy In Nanowell Grids), which analyzes the behavior of thousands of individual immune cells over time and can identify early indicators of treatment success or failure.

The company will work with Stanford's Dr. David Miklos and Dr. Saurabh Dahiya, who have built the Bone Marrow Transplantation and Cell Therapy Biobank. The biobank manages and stores biological samples from patients treated at their clinic and in clinical trials.

"Predicting which patients will achieve durable responses after CAR-T therapy remains one of the most important challenges in the field,” Miklos said in a news release. “We aim to uncover functional cellular signatures that can guide treatment decisions and improve patient outcomes.”

The project will specifically profile cells from patients with relapsed/refractory large B-cell lymphoma (r/rLBCL). According to CellChorus, only about half of r/rLBCL patients who receive CAR-T therapy "achieve a durable, long-term remission." Others do not respond to therapy or experience relapse.

“The sooner we know whether a cancer therapy is working, the better. To maximize patient benefit, we need technology that can provide a robust and early prediction of response to therapy. The technology needs to be scalable, cost-efficient, and capable of rapid turnaround times,” Rebecca Berdeaux, chief scientific officer of CellChorus, added in the release. “We are excited to work with Drs. David Miklos and Saurabh Dahiya and their colleagues on this very important project.”

CellChorus has previously received SBIR grants from federal agencies, including a $2.5 million award in 2024 from its National Center for Advancing Translational Sciences (NCATS) and a $2.3 million SBIR Fast-Track award from the National Institute of General Medical Sciences in 2023.

Houston museum showcases America's founding documents in rare exhibit

Experience History

As the United States prepares to celebrate its 250th birthday, Houstonians have a chance to see rare documents from the founding of the nation. Freedom Plane National Tour: Documents That Forged a Nation, presented by the National Archives Foundation, will be on display at the Houston Museum of Natural Science through Monday, May 25.

The collection includes a rare engraving of the original Declaration of Independence; official Oaths of Allegiance signed by George Washington, Aaron Burr, and Alexander Hamilton; a draft of the Bill of Rights; the Treaty of Paris, the documented that recognized America's independence from Great Britain; and the tally of votes approving the Constitution.

The National Archives specifically chose Houston as one of only eight cities in the country to host the exhibit as a means to help the documents reach a wider audience outside of the main hub of semiquincentennial events in New England and the Washington, D.C. area.

"One of the things we decided when we put the tour together because we wanted to be off the East Coast," said Patrick Madden, CEO of the National Archives Foundation, who was onsite for the exhibit's opening in Houston. "There's a lot of 250th celebration stuff happening in the original 13 colonies. How do we get it to major markets where larger numbers of people can see it? So in the case of Houston, obviously, [is a] major market in this part of the country, but also we've partnered with the museum twice before with National Archives exhibits, so we knew that they would be up to the task of handling the exhibit and the crowds."

The star of the collection is a rare engraving of the original Declaration of Independence. Secretary of State and future president John Quincy Adams commissioned 200 exact replicas of the document from engraver William J. Stone in 1823. Less than 50 now remain. Madden joyfully pointed out that there are errors in this document, a potent reminder that the men who forged a nation made mistakes.

"There's a couple of typos in it where they had to make corrections," said Madden. "So even the founders, you know, they're all human. That resonates because here these people are making this move against the most powerful nation in the world and putting their lives on the line for a country based on ideas."

Other impressive parts of the collection include official Oaths of Allegiance signed by George Washington, Aaron Burr, and Alexander Hamilton, as well as one of the drafts of the Bill of Rights. Many states would not ratify the Constitution until certain rights were included in the document, leading to Washington going on a national tour assuring state leaders enshrining protections was first on the list. The draft copy on display specifically shows the First Amendment in progress.

Houston is the fourth stop on the exhibition's tour, which will take the documents to Denver, Miami, Dearborn, and Seattle through the summer. Freedom Plane is just one part of a larger patriotic celebration at the HMNS, which includes a film series celebrating American science and culture and general Americana decoration throughout the main hall.

Admission to Freedom Plane is free to the public, but separate from general admission to the museum. Space is limited, and passes are available on a first-come, first-serve basis. Non-members should expect long waits or the possibility that the day's passes are sold out. Only museum members can reserve passes for specific times. Flash photography is prohibited due to the fragile nature of the documents.

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This article originally appeared on CultureMap.com.

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