For better or for worse, automation is going to have an affect on specific jobs in Houston. Getty Images

A new report from UpSkill Houston, a workforce initiative of the Greater Houston Partnership, puts the implications of workplace automation into stark focus. According to the report, more than 50 percent of middle-skill jobs in the Houston area face a higher-than-average risk of being upset by automation.

Peter Beard, who leads UpSkill Houston and is senior vice president for workforce development at the Greater Houston Partnership, says this means technology will "get embedded even more in the workplace than it's ever been before. … People's jobs will change because they have to work alongside technology. And there will be some jobs that get displaced because of that technology."

"Robots are coming," he adds, "but they're not going to replace us. We're going to have to figure out how to work beside them."

Middle-skill jobs require less than a four-year bachelor's degree but more than a high school diploma. In other words, jobs fitting into this middle ground might demand a two-year associate's degree or a training certificate from a technical school.

The report, released July 16, points out that middle-skill occupations in manufacturing and construction, for instance, face a high risk of disruption as companies adopt technologies that automate tasks, such as prefabrication of building materials. By contrast, the report notes, automation places jobs in the health care and service sectors in far less jeopardy because they generally rely on tasks that can't easily be automated. For example, jobs in health care often require social skills that can't be replicated through automation, which includes artificial intelligence, robotics, and machine learning.

However, jobs in health care aren't entirely immune from shifts in the workplace. The report indicates jobs in workforce segments like health care, sales and office support, IT, management, and drafting now require a medium or high level of digital skills.

That being said, all workers — regardless of their industry, occupation, or education — must embrace solid digital skills in order to succeed in the workforce, the report states. Beard says that to compete in today's workforce, a high school graduate must be proficient in Microsoft's Word, Excel, and PowerPoint programs as well as in a customer relationship management platform like Salesforce.

The findings in the UpSkill Houston report come at a pivotal time for the Houston economy, given the job-slashing double whammy of the coronavirus pandemic and the oil slump. The pandemic "has accelerated and accentuated a fundamental change that has been underway — a change in the education and skills needed to be successful in the workforce today and into the future," the report states.

That change poses particular challenges for low-skill and middle-skill workers in the Houston area, according to the report. The report recommends that workforce development stakeholders, including employers, schools, and community organizations, build a regional "framework" aimed at ramping up skillsets so workers can seize increasingly elevated career opportunities.

"It all starts with the employer. The employer is in the best position to know what skills they need today and what skills they are likely to need tomorrow," Beard says. "Fundamentally, we're trying to create a supply chain of talent that meets the needs of our economy and the needs of our employers."

But that takes employers collaborating with schools to ensure those skills are being taught, he says, and employers and schools motivating students to consider jobs that incorporate those skills.

Beard assigns those skills to four categories:

  • Technical skills
  • Digital skills
  • Soft skills, such as communication
  • Problem-solving skills

"This whole push we've had that everyone should go to college and get a four-year degree has made folks consider jobs that don't require a four-year college degree to be menial," Beard says. "That same mentality has also permeated the employers. How many job descriptions have we seen that put a four-year degree requirement on them but that don't require four years of college education?"

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Houston unicorn closes $421M to fuel first phase of flagship energy project

Heating Up

Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

“As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.

---

This article first appeared on EnergyCapitalHTX.com.

Houston food giant Sysco to acquire competitor in $29 billion deal

Mergers & Acquisitions

Sysco, the nation's largest food distributor, will acquire supplier Restaurant Depot in a deal worth more than $29 billion.

The acquisition would create a closer link between Sysco and its customers that right now turn to Restaurant Depot for supplies needed quickly in an industry segment known as “cash-and-carry wholesale.”

Sysco, based in Houston, serves more than 700,000 restaurants, hospitals, schools, and hotels, supplying them with everything from butter and eggs to napkins. Those goods are typically acquired ahead of time based on how much traffic that restaurants typically see.

Restaurant Depot offers memberships to mom-and-pop restaurants and other businesses, giving them access to warehouses stocked with supplies for when they run short of what they've purchased from suppliers like Sysco.

It is a fast growing and high-margin segment that will likely mean thousands of restaurants will rely increasingly on Sysco for day-to-day needs.

Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares. Based on Sysco’s closing share price of $81.80 as of March 27, 2026, the deal has an enterprise value of about $29.1 billion.

Restaurant Depot was founded in Brooklyn in 1976. The family-run business then known as Jetro Restaurant Depot, has become the nation's largest cash-and-carry wholesaler.

The boards of both companies have approved the acquisition, but it would still need regulatory approval.

Shares of Sysco Corp. tumbled 13% Monday to $71.26, an initial decline some industry analysts expected given the cost of the deal.

Houston researcher builds radar to make self-driving cars safer

eyes on the road

A Rice University researcher is giving autonomous vehicles an “extra set of eyes.”

Current autonomous vehicles (AVs) can have an incomplete view of their surroundings, and challenges like pedestrian movement, low-light conditions and adverse weather only compound these visibility limitations.

Kun Woo Cho, a postdoctoral researcher in the lab of Rice professor of electrical and computer engineering Ashutosh Sabharwal, has developed EyeDAR to help address such issues and enhance the vehicles’ sensing accuracy. Her research was supported in part by the National Science Foundation.

The EyeDAR is an orange-sized, low-power, millimeter-wave radar that could be placed at streetlights and intersections. Its design was inspired by that of the human eye. Researchers envision that the low-cost sensors could help ensure that AVs always pick up on emergent obstacles, even when the vehicles are not within proper range for their onboard sensors and when visibility is limited.

“Current automotive sensor systems like cameras and lidar struggle with poor visibility such as you would encounter due to rain or fog or in low-lighting conditions,” Cho said in a news release. “Radar, on the other hand, operates reliably in all weather and lighting conditions and can even see through obstacles.”

Signals from a typical radar system scatter when they encounter an obstacle. Some of the signal is reflected back to the source, but most of it is often lost. In the case of AVs, this means that "pedestrians emerging from behind large vehicles, cars creeping forward at intersections or cyclists approaching at odd angles can easily go unnoticed," according to Rice.

EyeDAR, however, works to capture lost radar reflections, determine their direction and report them back to the AV in a sequence of 0s and 1s.

“Like blinking Morse code,” Cho added. “EyeDAR is a talking sensor⎯it is a first instance of integrating radar sensing and communication functionality in a single design.”

After testing, EyeDAR was able to resolve target directions 200 times faster than conventional radar designs.

While EyeDAR currently targets risks associated with AVs, particularly in high-traffic urban areas, researchers also believe the technology behind it could complement artificial intelligence efforts and be integrated into robots, drones and wearable platforms.

“EyeDAR is an example of what I like to call ‘analog computing,’” Cho added in the release. “Over the past two decades, people have been focusing on the digital and software side of computation, and the analog, hardware side has been lagging behind. I want to explore this overlooked analog design space.”