United opens $32M expansion of high-tech training center, plans to hire hundreds

first-class facility

United Airlines plans on hiring 1,800 local employes — many of whom will be trained at a newly expanded training facility. Photo via United.com

A new study highlights United Airlines’ multibillion-dollar impact on the Houston economy as the company eyes the addition of 1,800 local employees this year.

The study, done by Chicago-based consulting firm Compass Lexecon, shows United’s hub at George Bush Intercontinental Airport along with spending by foreign visitors arriving on flights operated by United and its partners contribute an estimated $5.3 billion in annual gross domestic product (GDP) in Texas.

Furthermore, the study says United’s direct employment in Houston accounts for $1.2 billion in annual economic activity, and the local hub indirectly supports 56,000 local jobs. Houston is one of United’s seven U.S. hubs.

“United continues to be a great partner and business leader in the city of Houston, connecting Houstonians to the world and investing in vital infrastructure projects that help enhance the travel experience for millions of travelers,” Houston Mayor Sylvester Turner says in a news release.

The economic impact study was released in conjunction with the opening of the $32 million expansion of United’s flight attendant training center in Houston. Highlights of the 56,000-square-foot facility include a roughly 400-seat auditorium, and a 125,000-gallon pool and mock fuselage for practicing evacuation of a plane during a water landing.

This year, the Chicago-based airline is on track to add 15,000 workers, including 4,000 flight attendants. United employs more than 11,000 people in Houston and plans to hire 1,800 more in 2023.

The airline plans to train more than 600 flight attendants per month at the enlarged Houston facility.

“The best flight attendants in the industry deserve the best, most modern training facility in the country,” United CEO Scott Kirby says in a news release. “This expansion project is yet another example of an investment we made during the depths of the pandemic that will support our employees, further improve our ability to deliver great service, and set United up for success in 2023 and beyond.”

New United flight attendants will go through a six-and-a-half-week training course at the Houston facility and then return every 18 months to stay up to date on flight qualifications.

United posted profit of $737 million last year, down 75.5 percent from the pre-pandemic year of 2019, on operating revenue of nearly $44.5 billion, up 3.9 percent from 2019.

In 2022, the airline’s investment arm, United Ventures, announced an investment of up to $37.5 million in Houston-based NEXT Renewable Fuels. The company, which produces renewable fuel for the aviation sector, is developing a biofuel refinery in Oregon.

NEXT plans to go public this year through a SPAC merger with a publicly traded shell company.

Despite the hit on the economy from the pandemic, Houston's prosperous economic development activity from 2020 has earned it a top spot on a new nationwide ranking. Photo via Getty Images

The future of Houston's economy shines bright, according to new report

we're No. 3

The Houston metro area shed 141,300 jobs last year — the worst one-year job loss ever recorded in the region — and the area's unemployment rate peaked at 14.3 percent last April. But, according to a new ranking, there's at least one bright spot in Houston's economy.

Site Selection magazine's latest report shines a bright light on last year's economic development activity in the Houston area and on the future of the region's economy. The area ranks No. 3 among major U.S. metro areas for the number of economic development projects secured last year (213). Houston shares the top 10 with two other Texas metro areas: Dallas-Fort Worth (ranked second with 262 projects) and Austin (tied for No. 6 with 84 projects). Chicago claimed the top spot, landing 327 economic development projects last year.

Site Selection lists several Houston-area projects among the top projects that Texas gained last year, including:

Measured another way, Houston ranked sixth for the number of economic development projects per capita last year (32.8) among major metro areas. Austin grabbed the No. 2 spot (43.2 projects per capita), and Dallas-Fort Worth appeared at No. 3 (37.7 projects per capita).

In remarks January 26 at the 2021 annual meeting of the Greater Houston Partnership, board Chairwoman Amy Chronis cited the 1,000-job Axiom Space project as one of last year's economic highlights for the region.

"This is a game-changing project for Houston as we position our region as one of the country's leading tech hubs," Chronis said. "It is the type of catalytic project that will drive meaningful growth of the commercial aerospace sector in Houston."

Chronis noted that Houston already is home to nearly 23,000 aerospace manufacturing professionals, along with more than 500 aerospace and aviation companies and institutions, "but the potential is so much greater."

"The space race is shifting to a commercially funded and operated industry, and it is critical that Houston maintains our leadership position," Chronis said.

NASA announced the Axiom Space project — the world's first commercial space station — in January 2020. Axiom Space aims to begin attaching its space modules to the International Space Station in 2024.

"NASA has once again recognized the hard work, talent, and experience of Houstonians as we expand the International Space Station and promote commercial opportunities in space," U.S. Sen. John Cornyn, a Texas Republican, said in a release touting the Axiom Space project.

Just last month, Axiom Space raised $130 million in a Series B round led by London-based investment firm C5 Capital. The funding will go toward bulking up the company's workforce and developing the space station.

Rob Meyerson, operating partner at C5 and a new member of Axiom Space's board of directors, called the company "a force in the space sector," and the startup's space station "the infrastructure upon which we will build many new businesses in space" and a launchpad for exploration of the moon and Mars.

"Axiom's work to develop a commercial destination in space is a critical step for NASA to meet its long-term needs for astronaut training, scientific research, and technology demonstrations in low-Earth orbit," Jim Bridenstine, a Rice University graduate who resigned earlier this year as NASA administrator, said in January 2020. "We are transforming the way NASA works with industry to benefit the global economy and advance space exploration."

The Greater Houston Partnership hosted its annual economic outlook event online — here's what the numbers indicate for Houston business in the new year. Photo via Getty Images

2021 will be a 'bipolar year' and other key takeaways from the Greater Houston Partnership's economic outlook

looking forward

As much of the world is ready to celebrate a new year — one likely to be drastically less affected by COVID-19 — the Greater Houston Partnership released an annual report about what Houston's economy will look like in 2021.

Senior vice president of research Patrick Jankowski and his team put the Houston Region Economic Outlook report together and shared some its highlights at a virtual event hosted by Bob Harvey, president and CEO of GHP.

Of course, much of the study focused on how the coronavirus — as well as the impending vaccine — will affect the region's economy.

"At this point last year, neither Patrick nor any of us could have predicted the arrival of COVID-19 and its devastating impact on the global economy," Harvey says at the event. "Here in Houston COVID wreaked havoc on industries across the spectrum from energy to hospitality."

In the early weeks, the Houston region lost 350,000 jobs, according to the report, and in the months since, the region added back about half with 176,000 jobs.

Below are some more key takeaways from the report — and in most cases, the outcome depends on how COVID-19 case numbers are affected by the holidays and the accessibility of the vaccine.

"The weeks and months ahead are likely to be some of the most difficult of the pandemic," Harvey cautions. "We cannot afford to let our guard down now as we approach the finish line."

Energy will continue to struggle

Photo via Getty Images

The past six years have been rough for oil and gas, and in Houston specifically, Houston has lost nearly 100,000 upstream energy jobs, and the energy industry's share of Houston's GDP has fallen from 35 to 40 percent (a GHP '14 estimate) to 20 to 25 percent (a GHP '19 estimate).

The Russia-Saudi Oil Feud in March brought this decline to its head and it's not looking like it's getting back to normal any time soon. "Next year won't be any easier for the industry. While global demand has improved, it will remain three to five million barrels per day below pre-COVID levels," reads the report.

The new administration is expected to have several goals that will affect the industry, such as bringing the U.S. back into the Paris Agreement, negotiating new mileage and emission rules for autos and trucks, slowing or halting oil leasing on federal lands and in the Gulf of Mexico, increasing environmental scrutiny during the pipeline permitting process, and more.

Jobs in some industries will come back

Chart via GHP

According to the report, Houston's unemployment rate, at 3.9 percent in February, jumped to 5.5 percent in March, then 14.3 percent in April — the highest on record.

"Unemployment has improved — we're at 7.9 percent now," Jankowski says at the event.

But recovery depends on the industry. Jankowski predicts that retail and energy are both expected to continue to lose jobs, and other industry sectors — such as government, arts and entertainment, and educational services — aren't expected to grow by much.

However, some of the sectors hardest hit in 2020 — construction, manufacturing, support services, and restaurants — are expected to bounce back with thousands of new jobs.

The chart gives a range of job growth — there's a lower and a higher outlook. Jankowski says it depends on how well the vaccine is doing.

If by mid-year, we don't have much of the population inoculated, it's going to be closer to that lower number," he says.

2021 will be a "bipolar year"

Patrick Jankowski of the GHP. Photo via Houston.org

The first and second halves of the year are going to look different, Jankowski says, it's just a matter of how different at this point. In addition to the vaccine and COVID case numbers, the things the GHP as well as Houston businesses are watching is the new Biden Administration

"We won't see any significant growth in the economy until we get to the second half of the year," he says

The first quarter of 2021 will be especially tough for Houston, according to the report, since the region always experiences job losses in January as retail, restaurant, and transportation workers hired for the holiday season are rolled off. Additionally, contract workers employed to meet year-end deadlines are released and plans for reorganization are implemented.

"No one should be surprised when Houston loses 40,000 or more jobs this January," the report reads. "Houston's recovery will likely lag the U.S.'s by a few months, but growth will resume in the second half of '21."

Houston ranks at No. 11 in the best cities in America — and No. 1 in Texas. Getty Images

Houston scores lofty ranking in new study of America’s best cities

h-town proud

Buoyed by diversity, fine food, and Fortune 500 companies, Houston ranks as the 11th best city in the country and the top city in Texas, according to a consulting firm's annual study.

"Smart, skilled, and soulful, Houston is the American city of the future," says the study, published by Vancouver, Canada-based Resonance Consultancy Ltd., which specializes in marketing, strategy, and research for the real estate, tourism, and economic development sectors.

In last year's study, Houston also held the No. 11 ranking.

The 2020 study praises Houston for its:

  • Ethnic diversity, with more than 145 languages spoken in Houston-area homes.
  • Highly regarded restaurants, rated fourth behind Los Angeles, New York City, and Chicago.
  • Healthy concentration of Fortune 500 companies, representing the country's biggest businesses. Twenty-two companies based in the Houston area are listed on this year's Fortune 500.
  • Airport connectivity (No. 7 ranking).

The study further lauds the city for development of the Houston Spaceport, a hub for the region's space industry. However, the study notes that Houston ranks 47th for prosperity, 74th for employment, and 99th (next to last) for income equality.

"From medicine to space to energy, we are at the forefront of innovation. We are resilient problem-solvers who work together to find common solutions, no matter if we're facing Hurricane Harvey or a global pandemic," real estate developer David Mincberg, chairman of Houston First Corp., says in an August 6 release. "Houston continues to grow and get better, so we invite those who live here to rediscover our city and visitors to come as soon as it is safe and enjoy all that Houston has to offer."

Houston First promotes the city as a destination for leisure and business travelers.

Resonance Consultancy ranks large U.S. cities by relying on a mix of 26 performance and quality measures. This year, New York City tops the list, followed by Los Angeles; San Francisco; Chicago; Washington, D.C.; San Diego; Las Vegas; San Jose, California; Miami; and Boston.

Three spots behind Houston is Dallas, at No. 14. Austin comes in at No. 17 and San Antonio at No. 28. Fort Worth isn't included in the ranking.

Highlights for Dallas include:

  • No. 1 ranking for airport connectivity, thanks largely to the presence of Dallas/Fort Worth International Airport.
  • Country's highest concentration of corporate headquarters (more than 10,000).
  • Country's third largest grouping of Fortune 500 companies (24 in Dallas-Fort Worth).
  • Sixth largest LGBTQ community in the U.S.
  • Dallas Arts District, the country's largest contiguous urban arts district.

"Dallas inspires big ideas. This big and bold approach has resulted in world-class arts, culture, architecture, dining, business, and more, which are changing the face of the city," VisitDallas, the city's convention and tourism arm, says on its website.

Sitting at No. 17, Austin boasts No. 8 rankings for educational attainment and nightlife, the study says, along with a vibrant cultural scene anchored by events such as SXSW and a flourishing tech landscape dotted by the likes of Apple, Dell, Facebook, Google, and Oracle.

Austin's showing in the Resonance Consultancy study comes on the heels of the city being hailed by U.S. News & World Report as the No. 1 place to live in the country, with particularly high marks for desirability, jobs, and quality of life.

"With a strong, continually growing tech-talent labor force and an overall lower cost of living and doing business, I think Austin could end up being a beneficiary market in the recovery of the pandemic as many tech users look to move out of more densely populated areas like New York City or San Francisco," Erin Morales, senior vice president of commercial real estate services company CBRE, said in a July news release.

At No. 28, San Antonio earns kudos from Resonance Consultancy for its plethora of attractions, including the River Walk, five colonial missions, San Antonio Zoo, San Antonio Museum of Art, and Texas Golf Hall of Fame. Alamo City shows up at No. 7 in the study's attractions category.

In addition, the study highlights San Antonio's popular mixed-use Pearl district, whose assets include a campus of the Culinary Institute of America. "Around the esteemed school, a host of grads and chefs have clustered, creating a smorgasbord of choices from Italian to 'cue to bakery to vegetarian cuisine," according to the study.

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This article originally ran on CultureMap.

Texas was named the second best state for business by Forbes, and Oxford Economics predicted Houston's economic growth to be more significant over the next few years than most other major metros. Getty Images

Texas recognized as second best state for business, while Houston expected to see key economic growth

Feathers for our cap

Houston and the rest of Texas received two early Christmas presents signaling that their economies continue to percolate.

In a report released December 23, economic forecasting and analysis firm Oxford Economics predicted Houston and Dallas-Fort Worth will enjoy a greater share of economic growth through 2023 than any other mega-metro area in the U.S. except San Francisco.

Meanwhile, Forbes magazine declared on December 19 that Texas is the second best state for business, behind only North Carolina. Texas previously sat in the No. 3 spot on the Forbes list, preceded by North Carolina and Utah.

Through 2023, Oxford Economics forecasts average compound GDP growth of 2.4 percent in Houston and Dallas-Fort Worth. Among the country's 10 biggest metro areas, only the projection for San Francisco is higher (2.7 percent).

For Houston, the 2.4 percent figure would be an improvement over recent economic performance. From 2014 to 2018, the region's GDP growth rate was 1 percent, while it was 1.5 percent for 2015-19. In the 2020-21 timeframe, the growth rate for Houston is expected to be 1.9 percent.

In a recent forecast, the Greater Houston Partnership envisions the Houston area adding 42,300 jobs in 2020, mostly outside the energy sector. Among the region's top-performing sectors in 2020 will be healthcare, government, food services, and construction, the partnership says. Meanwhile, the energy, retail, and information sectors are expected to shrink.

In November, Robert Gilmer of the University of Houston's Institute for Regional Forecasting explained that by the end of 2022, job losses in the oil industry should have a limited effect on the region's economy. Still, he anticipates Houston's job growth through 2024 will be "moderate and just below trend."

In forecasting strong economic growth for Houston and DFW, Oxford Economics says the "industrial structures" of the two regions "are not exceptional, but low costs and low regulation mean that the industries that they do have grow faster than elsewhere."

"San Francisco's very high costs are creating affordability problems and rising inequalities that may eventually undermine its model," Oxford Economics adds. "Competitive advantages never last forever. The Sunbelt cities [including Houston and DFW] may yet give it a run for its money."

Houston's and DFW's competitive advantages mesh with those of the entire state. Texas' high points include lower taxes, lower labor expenses, lower cost of living, and low levels of regulation, Oxford Economics says.

As noted by Forbes, Moody's Analytics predicts Texas businesses will add close to 1 million new jobs by 2023, which would be the third highest average annual job growth rate among the states. Meanwhile, the share of Texans who launched businesses last year was the fourth highest in the country, according to Kauffman Foundation data cited by Forbes. And just three states — California, New York and Washington — saw more venture capital flow into them in 2018 and 2019 than Texas did, according to PwC.

Texas earned these rankings on the Forbes list:

  • No. 1 state for growth prospects
  • No. 1 state for business costs
  • No. 4 state for economic climate
  • No. 10 state for labor supply
  • No. 15 state for quality of life
  • No. 21 state for regulatory environment
In his 2019 State of the State address, Gov. Greg Abbott praised Texas as "the most powerful state in America," thanks in part to healthy job growth, low unemployment, and rising wages. "Texas is the premier economic destination in the United States," he said.
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Houston engineers develop breakthrough device to advance spinal cord treatment

future of health

A team of Rice University engineers has developed an implantable probe over a hundred times smaller than the width of a hair that aims to help develop better treatments for spinal cord disease and injury.

Detailed in a recent study published in Cell Reports, the probe or sensor, known as spinalNET, is used to explore how neurons in the spinal cord process sensation and control movement, according to a statement from Rice. The research was supported by the National Institutes of Health, Rice, the California-based Salk Institute for Biological Studies, and the philanthropic Mary K. Chapman Foundation based in Oklahoma.

The soft and flexible sensor was used to record neuronal activity in freely moving mice with high resolution for multiple days. Historically, tracking this level of activity has been difficult for researchers because the spinal cord and its neurons move so much during normal activity, according to the team.

“We developed a tiny sensor, spinalNET, that records the electrical activity of spinal neurons as the subject performs normal activity without any restraint,” Yu Wu, a research scientist at Rice and lead author of the study said in a statement. “Being able to extract such knowledge is a first but important step to develop cures for millions of people suffering from spinal cord diseases.”

The team says that before now the spinal cord has been considered a "black box." But the device has already helped the team uncover new findings about the body's rhythmic motor patterns, which drive walking, breathing and chewing.

Lan Luan (from left), Yu Wu, and Chong Xie are working on the breakthrough device. Photo by Jeff Fitlow/Rice University

"Some (spinal neurons) are strongly correlated with leg movement, but surprisingly, a lot of neurons have no obvious correlation with movement,” Wu said in the statement. “This indicates that the spinal circuit controlling rhythmic movement is more complicated than we thought.”

The team said they hope to explore these findings further and aim to use the technology for additional medical purposes.

“In addition to scientific insight, we believe that as the technology evolves, it has great potential as a medical device for people with spinal cord neurological disorders and injury,” Lan Luan, an associate professor of electrical and computer engineering at Rice and a corresponding author on the study, added in the statement.

Rice researchers have developed several implantable, minimally invasive devices to address health and mental health issues.

In the spring, the university announced that the United States Department of Defense had awarded a four-year, $7.8 million grant to the Texas Heart Institute and a Rice team led by co-investigator Yaxin Wang to continue to break ground on a novel left ventricular assist device (LVAD) that could be an alternative to current devices that prevent heart transplantation.

That same month, the university shared news that Professor Jacob Robinson had published findings on minimally invasive bioelectronics for treating psychiatric conditions. The 9-millimeter device can deliver precise and programmable stimulation to the brain to help treat depression, obsessive-compulsive disorder and post-traumatic stress disorder.

Houston clean hydrogen startup to pilot tech with O&G co.

stay gold

Gold H2, a Houston-based producer of clean hydrogen, is teaming up with a major U.S.-based oil and gas company as the first step in launching a 12-month series of pilot projects.

The tentative agreement with the unnamed oil and gas company kicks off the availability of the startup’s Black 2 Gold microbial technology. The technology underpins the startup’s biotech process for converting crude oil into proprietary Gold Hydrogen.

The cleantech startup plans to sign up several oil and gas companies for the pilot program. Gold H2 says it’s been in discussions with companies in North America, Latin America, India, Eastern Europe and the Middle East.

The pilot program is aimed at demonstrating how Gold H2’s technology can transform old oil wells into hydrogen-generating assets. Gold H2, a spinout of Houston-based biotech company Cemvita, says the technology is capable of producing hydrogen that’s cheaper and cleaner than ever before.

“This business model will reshape the traditional oil and gas industry landscape by further accelerating the clean energy transition and creating new economic opportunities in areas that were previously dismissed as unviable,” Gold H2 says in a news release.

The start of the Black 2 Gold demonstrations follows the recent hiring of oil and gas industry veteran Prabhdeep Singh Sekhon as CEO.

“With the proliferation of AI, growth of data centers, and a national boom in industrial manufacturing underway, affordable … carbon-free energy is more paramount than ever,” says Rayyan Islam, co-founder and general partner at venture capital firm 8090 Industries, an investor in Gold H2. “We’re investing in Gold H2, as we know they’ll play a pivotal role in unleashing a new dawn for energy abundance in partnership with the oil industry.”

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This article originally ran on EnergyCapital.

3 Houston innovators to know this week

who's who

Editor's note: Every week, I introduce you to a handful of Houston innovators to know recently making headlines with news of innovative technology, investment activity, and more. This week's batch includes an e-commerce startup founder, an industrial biologist, and a cellular scientist.

Omair Tariq, co-founder and CEO of Cart.com

Omair Tariq of Cart.com joins the Houston Innovators Podcast to share his confidence in Houston as the right place to scale his unicorn. Photo via Cart.com

Houston-based Cart.com, which operates a multichannel commerce platform, has secured $105 million in debt refinancing from investment manager BlackRock.

The debt refinancing follows a recent $25 million series C extension round, bringing Cart.com’s series C total to $85 million. The scaleup’s valuation now stands at $1.2 billion, making it one of the few $1 billion-plus “unicorns” in the Houston area.

Cart.com was co-founded by CEO Omair Tariq in October 2020. Read more.

Nádia Skorupa Parachin, vice president of industrial biotechnology at Cemvita

Nádia Skorupa Parachin joined Cemvita as vice president of industrial biotechnology. Photo courtesy of Cemvita

Houston-based biotech company Cemvita recently tapped two executives to help commercialize its sustainable fuel made from carbon waste.

Nádia Skorupa Parachin came aboard as vice president of industrial biotechnology, and Phil Garcia was promoted to vice president of commercialization.

Parachin most recently oversaw several projects at Boston-based biotech company Ginkjo Bioworks. She previously co-founded Brazilian biotech startup Integra Bioprocessos. Read more.

Han Xiao, associate professor of chemistry at Rice University

The funds were awarded to Han Xiao, a chemist at Rice University.

A Rice University chemist has landed a $2 million grant from the National Institute of Health for his work that aims to reprogram the genetic code and explore the role certain cells play in causing diseases like cancer and neurological disorders.

The funds were awarded to Han Xiao, the Norman Hackerman-Welch Young Investigator, associate professor of chemistry, from the NIH's Maximizing Investigators’ Research Award (MIRA) program, which supports medically focused laboratories. Xiao will use the five-year grant to advance his work on noncanonical amino acids.

“This innovative approach could revolutionize how we understand and control cellular functions,” Xiao said in the statement. Read more.

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