Houston maintains its top 3 position on ranking of cities that best attract biz

by the numbers

For the third year in a row, Houston ranked high on the list of major metros attracting new business. Photo via Getty Images

According to a recent report, Houston is still one of the top city in the United States for attracting new companies.

The ranking, which was researched and published by Site Selection Magazine, found that the Houston-The Woodlands-Sugar Land region attracted 255 business projects last year. This put the metro in the third place of the list that analyzed larger regions.

It's the third year in third place for Houston, and the city had a year over year improvement in number of deals; 2021 reported 213 new business projects in Houston. In fact, the top three cities – Chicago, Dallas, and Houston, respectively — has remained the same for all three years. For 2022, the Chicago metro garnered 448 projects, while Dallas-Fort Worth-Arlington reportedly had 426 projects.

The report also called out a recent statistic from Kastle Systems, which was based on building access control data. The stat found that among 10 major cities analyzed based on t week of February, Houston was one of three metros that had a returned-worker percentages higher than 50 percent.

According to the Greater Houston Partnership data, new business accounted for more than 50 percent of business announcements in 2022. GHP's data varied from Site Selection's due to a difference in reporting methods, but the organization's research identified 199 new business announcements in the Houston area in 2022.

The NBAs included new businesses, HQ announcements, and expansions. The GHP data included information about these deals' industry verticals — and the manufacturing sector accounted for almost a third of the total NBAs in 2022.

Chart via houston.org

The GHP also rounded up a few of the most prominate deals reported in their data. According to the Partnership, here were more details about these NBAs:

  • Orsted — an offshore wind developer from Denmark is expanding its presence in Texas by establishing a new office in the Woodlands. The move is expected to create up to 100 jobs in the region.
  • Syzygy Plasmonics — a Houston-based energy 2.0 company is expanding its operations to Pearland. The new location will serve as HQ, R&D, and manufacturing for its deep-decarbonization platform, creating up to 120 jobs.
  • Alfred Talke Logistic Services — a German logistics firm is establishing a new facility in the region, serving as its U.S. headquarters. This project represents a $25 million investment and will create 240 jobs.

Trevor Best, co-founder and CEO of Syzygy, first discussed the company's expansion last year on the Houston Innovators Podcast.

"What we're seeing is the market's appetite for our kind of technology — deep tech for decarbonization in energy and chemicals — is really high. If we want to meet global demand for our product, we need to get ready to scale," he says on the show.


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Houston ranks 10th among all of the country’s major metros for new businesses. Photo via Getty Images

Houston outranks other Texas cities when it comes to new business growth

by the numbers

A new study shows that Houston reigns as the startup capital of Texas.

For the study, the Smart Dollar website looked at data from the U.S. Census Bureau to determine the locations with the most new businesses per capita in 2021. Among major metro areas in Texas, Houston came out on top, gaining 21.2 new-business applications per 1,000 residents last year. Houston ranks 10th among all of the country’s major metros (those with at least 1 million residents).

The study found 150,971 new-business applications were filed last year in the Houston area. That translates into a 27.5 percent rise in applications versus 2020 and a 75.2 percent jump versus 2019.

Houston continues to gain notice as a startup hub. For instance, Bayou City appears at No. 5 in Startup Genome’s recent ranking of the world’s top emerging ecosystems for startups. Startup Genome is an advisory and research group that seeks to boost startup ecosystems.

Smart Dollar attributes the spike in startup activity in Houston and around the country to federal stimulus checks, low interest rates, and fast-rising values for homes, stocks, and other assets throughout 2020 and 2021.

“Another related factor was the Great Resignation, as record-high numbers of workers left jobs in search of better economic opportunities — many of whom started new businesses,” Smart Dollar points out.

The website adds that even during economic downturns, startups continue creating jobs, while established companies are more likely to shed employees to cut costs.

Almost 5.4 million applications were filed to set up new businesses in 2021, setting a new annual record for the U.S., according to the Census Bureau.

Here’s how the state’s three other major metros fared in the Smart Dollar study.

No. 11 Dallas-Fort Worth

  • New-business applications per 1,000 residents: 21.02
  • Total new-business applications in 2021: 160,518
  • One-year increase in new-business applications: 25.8 percent
  • Two-year increase in new-business applications: 62.6 percent

No. 14 Austin

  • New-business applications per 1,000 residents: 20.51
  • Total new-business applications in 2021: 46,835
  • One-year increase in new-business applications: 34.5 percent
  • Two-year increase in new-business applications: 52.4 percent

No. 38 San Antonio

  • New-business applications per 1,000 residents: 13.28
  • Total new-business applications in 2021: 33,978
  • One-year increase in new-business applications: 25.6 percent
  • Two-year increase in new-business applications: 47.8 percent
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MD Anderson launches $10M joint venture to advance personalized cancer treatment tech

fighting cancer

The University of Texas MD Anderson Cancer Center and Japan’s TOPPAN Holdings Inc. have formed a joint venture to co-develop TOPPAN Holdings’ 3D cell culture, or organoid, technology known as invivoid.

The technology will be used as a tool for personalized cancer treatments and drug screening efforts, according to a release from MD Anderson. TOPPAN has committed $10 million over five years to advance the joint research activities.

“The strategic alliance with MD Anderson paves a promising path toward personalized cancer medicine," Hiroshi Asada, head of the Business Innovation Center at TOPPAN Holdings, said in a news release.

Invivoid is capable of establishing organoid models directly from patient biopsies or other tissues in a way that is faster and more efficient. Researchers may be able to test a variety of potential treatments in the laboratory to understand which approach may work best for the patient, if validated clinically.

“Organoids allow us to model the three-dimensional complexity of human cancers in the lab, thus allowing us to engineer a powerful translational engine—one that could not only predict how patients will respond to therapy before treatment begins but also could help to reimagine how we discover and validate next-generation therapies," Dr. Donna Hansel, division head of pathology and laboratory medicine at MD Anderson, added in the news release. “Through this collaboration, we hope to make meaningful progress in modeling cancer biology for therapeutic innovation.”

The joint venture will build upon preclinical research previously conducted by MD Anderson and TOPPAN. The organizations will work collaboratively to obtain College of American Pathologists (CAP) and Clinical Laboratory Improvement Amendments (CLIA) certifications for the technology, which demonstrate a commitment to high-quality patient care. Once the certifications are obtained, they plan to conduct observational clinical studies and then prospective clinical studies.

“We believe our proprietary invivoid 3D cell culture technology, by enabling the rapid establishment of organoid models directly from patient biopsies, has strong potential to help identify more effective treatment options and reduce the likelihood of unnecessary therapies,” Asada added in the release. “Through collaboration on CAP/CLIA certification and clinical validation, we aim to bring this innovation closer to real-world patient care and contribute meaningfully to the advancement of cancer medicine."

NASA taps Houston-area company to explore low-cost spacecraft delivery

Webster-based Arrow Science and Technology is one of six companies picked by NASA to study low-cost ways to launch and deliver spacecraft for difficult-to-reach orbits.

In all, nine studies will be performed under a roughly $1.4 million award from NASA. Another Texas company, Cedar Park-based Firefly Aerospace, is also among the six companies working on the studies.

“With the increasing maturity of commercial space delivery capabilities, we’re asking companies to demonstrate how they can meet NASA’s need for multispacecraft and multiorbit delivery to difficult-to-reach orbits beyond current launch service offerings,” Joe Dant, a leader of the Launch Services Program at NASA’s Kennedy Space Center in Florida, said in a news release. “This will increase unique science capability and lower the agency’s overall mission costs.”

Arrow is teaming up with Rockville, Maryland-based Quantum Space for its study. Quantum’s Ranger orbital transfer vehicle provides payload delivery services for spacecraft heading to low-Earth and lunar orbits.

Arrow, a Native American-owned small business, offers technical support and hardware manufacturing services for the space and defense industries.

James Baker, founder and president of Arrow, said in a news release that the combination of his company’s deployment systems with Quantum’s Ranger vehicle “allows our customers the ability to focus on the development of their payload[s] while we take care of getting them where they need to be.”

“This is an exciting opportunity to demonstrate the unique capabilities of our highly maneuverable Ranger spacecraft, which will expand NASA’s options for reaching dynamic and challenging … orbits,” Kerry Wisnosky, CEO of Quantum Space, added in the release.

The nine studies are scheduled to be completed by mid-September.

NASA said it will use the studies’ findings “to inform mission design, planning, and commercial launch acquisition strategies for risk-tolerant payloads, with a possibility of expanding delivery services to larger-sized payloads and to less risk-tolerant missions in the future.”

ExxonMobil may pause plans for $7 billion Baytown hydrogen plant

Change of Plans

Spring-based ExxonMobil, the country’s largest oil and gas company, might delay or cancel what would be the world’s largest low-carbon hydrogen plant due to a significant change in federal law. The project carries a $7 billion price tag.

The Biden-era Inflation Reduction Act created a new 10-year incentive, the 45V tax credit, for production of clean hydrogen. But under President Trump’s "One Big Beautiful Bill Act," the window for starting construction of low-carbon hydrogen projects that qualify for the tax credit has narrowed. The Inflation Reduction Act mandated that construction start by 2033. But the Big Beautiful Bill switched the construction start time to early 2028.

“While our project can meet this timeline, we’re concerned about the development of a broader market, which is critical to transition from government incentives,” ExxonMobil Chairman and CEO Darren Woods said during the company’s recent second-quarter earnings call.

Woods said ExxonMobil is working to determine whether a combination of the 45Q tax credit for carbon capture projects and the revised 45V tax credit will help pave the way for a “broader” low-carbon hydrogen market.

“If we can’t see an eventual path to a market-driven business, we won’t move forward with the [Baytown] project,” Woods said.

“We knew that helping to establish a brand-new product and a brand-new market initially driven by government policy would not be easy or advance in a straight line,” he added.

Woods said ExxonMobil is trying to nail down sales contracts connected to the project, including exports of ammonia to Asia and Europe and sales of hydrogen in the U.S.

ExxonMobil announced in 2022 that it would build the low-carbon hydrogen plant at its refining and petrochemical complex in Baytown. The company has said the plant is slated to go online in 2027 and 2028.

As it stands now, ExxonMobil wants the Baytown plant to produce up to 1 billion cubic feet of hydrogen per day made from natural gas, and capture and store more than 98 percent of the associated carbon dioxide. The company has said the project could store as much as 10 million metric tons of CO2 per year.

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This article originally appeared on EnergyCapitalHTX.com.

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