Houston jobs could be hit hard by the rise of robots, one study finds

Automation nation

Texas is listed as the third-most vulnerable state when it comes to robots replacing the workforce in manufacturing. Houston houses a third of the manufacturing jobs in the state. Thossaphol Somsri/Getty Images

If a new forecast comes true, Houston's manufacturing sector could take an especially hard hit from the upturn in the use of robots.

In a new report, Oxford Economics, a forecasting and analysis firm based in the United Kingdom, ranks Texas as the third most vulnerable state when it comes to human workers in manufacturing being replaced by robotic labor. The report gives no estimate of how many manufacturing jobs Texas might lose to robots, but around the world, robots could boot 20 million jobs by 2030.

About one-third of Texas' manufacturers operate in the Houston metro area, meaning the robot revolution carries significant weight for the regional economy.

In 2017, manufacturing accounted for $82.6 billion, or nearly 17 percent, of the Houston area's economic output, the U.S. Bureau of Economic Analysis says. Manufacturing employment in the region averaged 219,160 jobs in 2017, with total wages of nearly $4.8 billion.

Among the top manufacturing segments in the region are fabricated metals (22 percent of all manufacturing jobs), machinery (19 percent) and chemicals (17.5 percent), according to the Greater Houston Partnership. Between 2012 and 2017, manufacturing employment in the Houston area slipped by 9.8 percent, going from 243,011 workers to 219,160 workers.

However, a recent report from the Economic Innovation Group shows Harris County netted more manufacturing jobs (11,592) from December 2016 to December 2018 than any other county in the U.S.

According to the National Association of Manufacturers, the manufacturing sector in Texas created more than $226 billion in economic output in 2017. Last year, about 880,900 people held manufacturing jobs in Texas; that's more than 7 percent of the statewide workforce.

In declaring that Texas sits among the states most susceptible to job losses due to robotics, Oxford Economics took into account factors such as:

  • Dependence on manufacturing jobs.
  • Current use of robots in manufacturing.
  • Productivity of the manufacturing workforce.

Based on those criteria, Texas received a robot vulnerability score of 0.50. The top two states, Oregon and Louisiana, each got a score of 0.58, with the higher number meaning greater vulnerability.

The report cites three reasons for the ascent of robots in manufacturing:

  • Robots are becoming cheaper than humans.
  • Robots are becoming more sophisticated.
  • Demand for manufactured goods is rising.

"The rise of the robots will boost productivity and economic growth. It will lead, too, to the creation of new jobs in yet-to-exist industries, in a process of 'creative destruction,'" according to the Oxford Economics report. "But existing business models across many sectors will be seriously disrupted. And tens of millions of existing jobs will be lost, with human workers displaced by robots at an increasing rate as robots become steadily more sophisticated."

Tony Bennett, president and CEO of the Texas Association of Manufacturers, says the Oxford Economics report isn't all gloom and doom.

"Robotics and mechanization in our advanced manufacturing industries will continue to displace some general-labor jobs. However, this change is also ushering in a new set of higher-skilled jobs that are being created to engineer, build, and service these sophisticated machines," Bennett says. "The state of Texas must continue striving to increase educational opportunities in engineering, math, science, and career and technical programs to meet the complex manufacturing processes of the future."

Houston Community College's Advanced Manufacturing Center for Excellence is among the organizations in the Houston area that are preparing workers for jobs in robotics and other high-demand, tech-driven aspects of manufacturing.

"Innovation is Houston's bedrock," Houston Mayor Sylvester Turner said in 2017. "The city would have never thrived without the innovations it took to build the Ship Channel and the innovating that goes on every day in the energy industry, at the Texas Medical Center, at the Johnson Space Center and in the manufacturing sector. Now, Houston is poised to take its place at the forefront of the American future in technology."

Earlier this year, another study found a similarly daunting result. Almost half of Houston's workplace tasks are susceptible to automation, according to a new report from the Brookings Institution's Metropolitan Policy Program. Of 100 metros analyzed, Houston ranks 31st among the country's 100 biggest metros, with 46.3 percent of work tasks susceptible to automation.

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Here's what Houston startups have raised in funding so far in 2024

Q1 2024 VC ACTIVITY

Five Houston startups have started the new year strong with over $320 million in venture funding — most of which from one mega deal for a geothermal company.

According to InnovationMap reporting, Houston's VC activity in the first quarter of 2024 spanned industry and stage — from pre-seed to series E. It's a large chunk of money raised in Houston for one quarter — but not in terms of deals closed, at least compared to the previous quarter, in which startups raised over $170 million but across nine deals.

On the national side, it's not too different of a story. According to a quarterly report from PitchBook, the United State's VC activity for the start of the year "showed to be one of the slowest areas of the venture market during the quarter." Only $9.3 billion in capital was raised in the U.S. last quarter, which is only 11.3 percent of the total raised in the already slowed market of 2023.

"While dry powder remains high, slowed fundraising portends to LP hesitancy toward VC, and should predict a more difficult dealmaking environment down the road," reads an email from PitchBook. "During the past few years, large mega-funds drove fundraising trends, but Q1 VC fundraising shows there may be no appetite for such vehicles in today’s market."

These are the five startup VC deals closed in Houston so far this year, according to reporting on InnovationMap.

Fervo Energy raises $244M in latest funding round

Fervo Energy scored a $244 million round of funding thanks to existing and new investors. Photo via Fervo Energy

An Oklahoma-based shale oil and gas leader has backed Fervo Energy's latest round of funding, supporting the startup's geothermal technology yet again.

Fervo announced its latest round of funding this week to the tune of $244 million. The round was led by Devon Energy, a company that's previously backed the startup.

“Demand for around-the-clock clean energy has never been higher, and next-generation geothermal is uniquely positioned to meet this demand,” Tim Latimer, Fervo CEO and co-founder, says in a news release. “Our technology is fully derisked, our pricing is already competitive, and our resource pipeline is vast. This investment enables Fervo to continue to position geothermal at the heart of 24/7 carbon-free energy production.” Read more about the round.

Procyrion secures $57.7M series E

Procyrion has announced the closing of its series E round of funding. Photo via Getty Images

Houston-born and bred medical device company, Procyrion, has completed its series E with a raise of $57.7 million, including the conversion of $10 million of interim financing.

Procyrion is the company behind Aortix, a pump designed to be placed in the descending thoracic aorta of heart failure patients, which has been shown to improve cardiac performance in seriously ill subjects. The money raised will allow the company to proceed with a the DRAIN-HF Study, a pivotal trial that will be used for eventual FDA approval and commercialization.

The Aortix is the brainchild of Houston cardiologist Reynolds Delgado. According to Procyrion’s CSO, Jace Heuring, Delgado, gained some of his experience with devices for the heart working with legendary Texas Heart Institute surgeon O.H. “Bud” Frazier. He filed his first patents related to the Aortix in 2005. Read more about the round.

Sage Geosystems closes $17M series A 

Houston-based Sage Geosystems announced the first close of $17 million round led by Chesapeake Energy Corp. Photo via sagegeosystems.com

A Houston geothermal startup has announced the close of its series A round of funding.

Houston-based Sage Geosystems announced the first close of $17 million round led by Chesapeake Energy Corp. The proceeds aim to fund its first commercial geopressured geothermal system facility, which will be built in Texas in Q4 of 2024. According to the company, the facility will be the first of its kind.

The venture is joined by technology investor Arch Meredith, Helium-3 Ventures and will include support from existing investors Virya, LLC, Nabors Industries Ltd., and Ignis Energy Inc.

“The first close of our Series A funding and our commercial facility are significant milestones in our mission to make geopressured geothermal system technologies a reality,” Cindy Taff, CEO of Sage Geosystems, says in a news release. “The success of our GGS technologies is not only critical to Sage Geosystems becoming post-revenue, but it is an essential step in accelerating the development of this proprietary geothermal baseload approach. Read more about the round.

Ema raises $2M round of bridge funding

Ema, which operates as a health and wellness-focused, AI-based chat for women, has raised additional funding. Screenshot courtesy of Ema

A Houston-based startup that's improving health and wellness for women with its artificial intelligence-backed platform has raised a bridge round of funding.

Ema closed its latest bridge round, bringing its total funding to nearly $2 million. The company received investment from Kubera's Venture Capital and Victorum Capital, which joined existing investors Hearst Labs, Wormhole Capital, Acumen America, and Techstars.

Ema strives to deliver "personalized, empathetic, and evidence-based support" to its users through its generative AI technology. The platform has more than 100,000 users, and has expanded into the B2B sector with $100,000 in contracts within just 30 days after pivoting to this model, according to the company. Read more about the round.

TrueLeap Inc. raises oversubscribed $610,000 pre-seed round

The edtech company offers a comprehensive approach to shrinking the digital divide with a suite of technology including software, hardware, and more. Photo courtesy of TrueLeap

An edtech startup has just secured funding to further its mission of increasing accessibility to education.

TrueLeap Inc., global digital education startup addressing the digital divide in education, has raised $610,000, which is over its target of $500,000. The round was led by United Kingdom-based Maya Investments Limited.

"This oversubscribed funding round, led by Maya Investments Limited, is a testament to the urgent need for innovative educational technologies in emerging markets. Our commitment to providing affordable and integrated solutions is stronger than ever," says Sandip Bordoloi, CEO and Co-Founder of TrueLeap, in a news release. Read more about the round.

Greentown Labs reduces roles at Houston, Boston incubators

tough decisions

Greentown Labs has announced a reduction in its staff, which affects both of its locations.

In a letter addressed to the Greentown Labs community, the organization's CEO and President Kevin Knobloch reported that Greentown will be reducing its staff by 30 percent, eliminating 12 roles in Boston and six in Houston. Knobloch noted changes in leadership, growth of the team, and adjustments following the pandemic.

"Greentown Labs grew rapidly over the past four years in pursuit of advancing its mission to catalyze climate action through entrepreneurship, partnership, and collaboration," Knobloch writes in the letter. "This created a structural deficit where growth outpaced revenue."

The letter did not provide details of which positions were eliminated at either location.

With these resizing of the staff and reduced expenses, Knobloch writes that the organization is positioned well for its future.

"Despite this decision, I remain optimistic about the future for Greentown and the impact we will have on addressing the climate crisis," Knobloch tells the community. "Our mission is as urgent as ever and we remain committed to supporting all of you—our startups—by prioritizing core operations, member services, and strategic partner engagements."

Knobloch took the helm of Greentown last summer. He previously served as chief of staff of the United States Department of Energy in President Barack Obama’s second term.

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This article originally ran on EnergyCapital.

RBPC's big winners, Hello Alice scores funding, and more trending Houston innovation news

top stories

Editor's note:Let's roundup the top Houston innovation news from the week. Trending Houston tech and startup articles on InnovationMap included the results from the 2024 Rice Business Plan Competition, recent funding from a Houston startup, and more.

Houston tech platform raises series C round backed by Mastercard

Following the round, Hello Alice is now valued at $130 million. Photo courtesy Cayce Clifford/Hello Alice

Hello Alice, a fintech platform that supports 1.5 million small businesses across the country, has announced its series C round.

The amount raised was not disclosed, but Hello Alice reported that the fresh funding has brought the company's valuation to $130 million. Alexandria, Virginia-based QED Investors led the round, and investors included Mastercard, Backstage Capital, Guy Fieri, Golden Seeds, Harbert Growth Partners Fund, How Women Invest I, LP, Lovell Limited Partnership, Tyler “Ninja” and Jessica Blevins, and Tamera Mowry and Adam Housley, per a news release from the company.

“We are thrilled to hit the milestone of 1.5 million small businesses utilizing Hello Alice to elevate the American dream. There are more entrepreneurs launching this year than in the history of our country, and we will continue to ensure they get the capital needed to grow,” Elizabeth Gore and Carolyn Rodz, co-founders of Hello Alice, say in a news release. “In closing our Series C, we welcome Mastercard to our family of investors and continue to be grateful to QED, How Women Invest, and our advocates such as Guy Fieri.” Continue reading.

Annual Houston student startup competition doles out over $1.5M in cash, investment prizes

Thirteen of the 42 teams participating in RBPC 2024 walked away with investment funding. Photo courteys of Rice University

For the 24th year, the Rice Alliance for Technology and Entrepreneurship hosted its Rice Business Plan Competition, facilitating over $1.5 million in investment and cash prizes to the top teams.

The 42 startups competing this year, which were announced earlier this year and included teams from around the world, participated in the three-day event that culminated in a reception on Saturday, April 6. The companies were divided into five categories: Energy, Cleantech and Sustainability; Hard Tech; Life Sciences and Healthcare Solutions; Digital Enterprise; Consumer Products and Services.

“We award the competitors $1 million in prizes, prizes that serve as foundational capital to launch their startup,” RBPC Director Catherine Santamaria says at the awards gala. “That’s a large number of prizes, but the biggest thing our startups leave with is a feeling of generosity and community from this room. This community is always ready and willing to help our founders and support our vision for the competition by investing time, money and resources in these student innovators.” Continue reading.

Houston organizations launch collaborative center to boost cancer outcomes

Researchers at the new SynthX Center will aim to turn fundamental research into clinical applications and make precision adjustments to drug properties and molecules. Photo via Rice University

Rice University's new Synthesis X Center officially launched last month to bring together experts in cancer care and chemistry.

The center was born out of what started about seven years ago as informal meetings between Rice chemist Han Xiao's research group and others from the Baylor College of Medicine’s Dan L Duncan Comprehensive Cancer Center at the Baylor College of Medicine. The level of collaboration between the two teams has grown significantly over the years, and monthly meetings now draw about 100 participants from across disciplines, fields and Houston-based organizations, according to a statement from Rice.

Researchers at the new SynthX Center will aim to turn fundamental research into clinical applications and make precision adjustments to drug properties and molecules. It will focus on improving cancer outcomes by looking at an array of factors, including prevention and detection, immunotherapies, the use of artificial intelligence to speed drug discovery and development, and several other topics. Continue reading.

Early-stage accelerator names 9th Houston cohort

Global organization gener8tor, along with Downtown Launchpad, started its ninth gBETA Houston cohort last month. Photo via Getty Images

For the ninth time, gBETA is incubating five early-stage Houston startups providing innovative solutions across skincare, human resources, and more.

Global organization gener8tor, along with Downtown Launchpad, started its ninth gBETA Houston cohort last month. The free seven-week, no-equity accelerator program selected five Houston-based founders to provide helpful programming, support, and connections to mentors, customers, corporate partners, and investors.

"We're thrilled to continue fostering innovation in Houston and are thankful for our collaboration with Downtown Launchpad as we launch the ninth cohort of gBETA Houston,” says Vanessa Huerta, vice president of gBETA at gener8tor, in a statement. Continue reading.

Houston physicist scores $15.5M grant for high-energy nuclear physics research

The work is "poised to revolutionize our understanding of fundamental physics," according to Rice University. Photo courtesy of Rice University

A team of Rice University physicists has been awarded a prestigious grant from the Department of Energy's Office of Nuclear Physics for their work in high-energy nuclear physics and research into a new state of matter.

The five-year $15.5 million grant will go towards Rice physics and astronomy professor Wei Li's discoveries focused on the Compact Muon Solenoid (CMS), a large, general-purpose particle physics detector built on the Large Hadron Collider (LHC) at CERN, a European organization for nuclear research in France and Switzerland. The work is "poised to revolutionize our understanding of fundamental physics," according to a statement from Rice.

Li's team will work to develop an ultra-fast silicon timing detector, known as the endcap timing layer (ETL), that will provide upgrades to the CMS detector. The ETl is expected to have a time resolution of 30 picoseconds per particle, which will allow for more precise time-of-flight particle identification. Continue reading.

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