New report identifies the Houston jobs that are most likely going to be affected by automation

the robots are coming

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

Property Showcase

Houston investor on why 2025 will be the year of exits

houston innovators podcast episode 270

Samantha Lewis will be the first to admit that the past few years have been tough on startups and venture capital investors alike. However, as she explains on the Houston Innovators Podcast, the new year is expected to look very different.

"We're super excited going into 2025," says Lewis, who is a partner at Houston-based VC firm Mercury. "For us, 2024 was a year of laying a lot of groundwork for what we believe is going to be a massive year of startup exits and liquidity for the venture ecosystem. We've been hard at work making sure our companies are prepared for that."

Mercury, in fact, has already gotten a taste, with three of its portfolio companies celebrating exits — all with Houston roots. Fintech platform Brassica was acquired by BitGo in February, and Apparatus, founded as Topl in Houston, was acquired early last year. The third deal has yet to be announced publicly.

And it's just getting started, Lewis says. She explains that all of the companies in Mercury's portfolio that are promising — albeit not break-out, to-be-billion-dollar companies — are going to have opportunities to sell in 2025 and 2026.

"What we've started to do — and I encourage everyone to do this if you're working on a startup — is just start to just engage with strategic buyers, investment bankers, and people you think might be a great fit to buy your company," Lewis says, "because we really think that the next few years will be the best liquidity years we've seen in a really long time. And if you're not ready for it, you're going to miss the boat."

In addition to sharing her advice to get "exit preparedness," Lewis explains some specific tech trends she's keeping an eye on in Mercury's "power theme," which she works on directly. This encompasses fintech, blockchain, web3 and more.

SpaceX loses mega rocket in latest thrilling Starship test flight

Testing

SpaceX launched its Starship rocket on its latest test flight Thursday, but the spacecraft was destroyed following a thrilling booster catch back at the pad.

Elon Musk’s company said Starship broke apart — what it called a “rapid unscheduled disassembly." The spacecraft's six engines appeared to shut down one by one during ascent, with contact lost just 8 1/2 minutes into the flight.

The spacecraft — a new and upgraded model making its debut — was supposed to soar across the Gulf of Mexico from Texas on a near loop around the world similar to previous test flights. SpaceX had packed it with 10 dummy satellites for practice at releasing them.

A minute before the loss, SpaceX used the launch tower's giant mechanical arms to catch the returning booster, a feat achieved only once before. The descending booster hovered over the launch pad before being gripped by the pair of arms dubbed chopsticks.

The thrill of the catch quickly turned into disappointment for not only the company, but the crowds gathered along the southern tip of Texas.

“It was great to see a booster come down, but we are obviously bummed out about [the] ship,” said SpaceX spokesman Dan Huot. “It’s a flight test. It’s an experimental vehicle," he stressed.

The last data received from the spacecraft indicated an altitude of 90 miles and a velocity of 13,245 mph.

Musk said a preliminary analysis suggests leaking fuel may have built up pressure in a cavity above the engine firewall. Fire suppression will be added to the area, with increased venting and double-checking for leaks, he said via X.

The 400-foot rocket had thundered away in late afternoon from Boca Chica Beach near the Mexican border. The late hour ensured a daylight entry halfway around the world in the Indian Ocean. But the shiny retro-looking spacecraft never got nearly that far.

SpaceX had made improvements to the spacecraft for the latest demo and added a fleet of satellite mockups. The test satellites were the same size as SpaceX’s Starlink internet satellites and, like the spacecraft, were meant to be destroyed upon entry.

Musk plans to launch actual Starlinks on Starships before moving on to other satellites and, eventually, crews.

It was the seventh test flight for the world’s biggest and most powerful rocket. NASA has reserved a pair of Starships to land astronauts on the moon later this decade. Musk’s goal is Mars.

Hours earlier in Florida, another billionaire’s rocket company — Jeff Bezos’ Blue Origin — launched the newest supersized rocket, New Glenn. The rocket reached orbit on its first flight, successfully placing an experimental satellite thousands of miles above Earth. But the first-stage booster was destroyed, missing its targeted landing on a floating platform in the Atlantic.

Houston private equity firm beats target on first investment fund

fresh funds

Houston-based private equity firm Sallyport has raised $160 million for its first investment fund, exceeding the target amount by $10 million.

The Sallyport Partners Fund focuses primarily on investments in founder- and family-owned businesses, corporate carve-outs and startups in various industries.

The firm’s chairman, Doug Foshee, seeded the fund. He and managing partners Kyle Bethancourt and Ryan Howard started the firm in 2023.

“Sallyport Partners Fund was created to utilize the proven processes our team has developed over time to generate value for like-minded investors on a larger and more impactful scale,” Foshee says in a news release.

Investors in the Sallyport fund include entrepreneurs, business executives and influential Texas families. Aside from Foshee, names of the fund’s investors weren’t disclosed.

“We are deeply committed to working hand-in-hand with management teams to drive transformative growth and generate long-term value,” says Bethancourt. “Our operational capabilities are forged from decades of firsthand experience leading, investing in, and building thriving businesses from the ground up. We have a unique appreciation for the management team’s perspective because we’ve been in their shoes.”

Those shoes have covered some pretty impressive ground:

  • Foshee is former chairman, president, and CEO of Houston-based El Paso Corp., which owned and operated a 44,000-mile natural gas pipeline network. In 2012, El Paso merged with Houston-based pipeline company Kinder Morgan in a multibillion-dollar deal.
  • Before Sallyport, Bethancourt was a vice president in the credit division of Blackstone, an investment powerhouse with more than $1 trillion in assets under management. Earlier, he worked at D.E. Shaw & Co., a New York City-based hedge fund with more than $65 billion in assets under management.
  • Before Sallyport, Howard worked at Platform Partners, a Houston-based private equity firm. Earlier, he worked for the natural resources arm of investment banking giant Goldman Sachs.
View All Listings