The Fort Worth Chamberletter

Jeff King, the new chairman of the Fort Worth Chamber of Commerce board of directors, sees a compelling need for innovative grooming of new leadership for a city that’s encountering new challenges as an international business and cultural force.

King, managing director with J.P. Morgan, takes the helm in partnership with 70 business leaders who serve with him on the board. His views are sharpened by extensive community involvement that spans the public-private sectors. He shared some thoughts about his priorities as Chamber board chairman in the following Q&A:

1. How do you describe your vision for Fort Worth?

We need to recognize that Fort Worth is at an inflection point. Our traditional sources of corporate and community leadership are evolving. This is nothing new, as over the years Fort Worth has seen major employers sell or leave town, it has endured defense budget cutbacks, crises in banking and energy, and it has responded.

However, I believe that our city has seen over the past decade a significant change in the very nature of our community leadership, in the degree of involvement of our business leaders with regard to philanthropic support, strategic planning, and city and county budget issues. I also believe that there has been a change in the makeup, the demographics, the priorities and values of the generation of community leaders and benefactors who are growing up behind them.

If you were to pose this as a question to the community at large, would the answers differ between generations, or lifestyles, or races? As I have said, we are at an inflection point, if not a major crossroads. Fort Worth has grown up, we’re one of the largest cities in the country, we’re playing on the world stage, and we have to work harder than ever in order to maintain our unique character. We also must ensure that our community is an open, inviting, fertile field for those young, creative, entrepreneurial, and multicultural leaders that we must retain and attract if we are to truly live into our future.

2. What’s one way the Chamber can help Fort Worth tap more of its potential?

To my earlier point around the evolution of our city and its leadership, Vision Fort Worth is the young professionals group at the Chamber. The value of this type of organization often comes from networking or educational opportunities. However, it’s time we take a bolder step.

We don’t need to figure out how to plug our young leaders into today’s Fort Worth; we need to provide them a forum that allows them to create the blueprint for what tomorrow’s Fort Worth will be. We all owe an incredible debt of gratitude to the generations of leaders that provided us with this amazing city, our world-class educational institutions, arts community and zoo – this one-of-a-kind personality that combines our sophistication with our western heritage.

But the times are changing, and our future leaders will be even more traveled, more educated, more connected, and more diverse than ever before. They will inherit a Fort Worth where the concern is not whether it will grow, but how it will continue to reinvent its relevance within one of the largest and fastest-growing metropolitan regions on Earth.

Vision Fort Worth can provide the platform that brings our future leaders together in order to brainstorm, envision, define, and implement the map to our future. How will Fort Worth be viewed 25 years from now? Will it be a magnet for college graduates as they start their careers, no matter if they matriculated here or elsewhere in the world? Will it still be famous for its arts community? Will it be accessible to all people? Will it have a vibrant public education system? Will the river be fully utilized? Will it remain an important medical and transportation center? When my grandchildren’s peers overseas hear about Fort Worth, what will their impression be? When I speak to Vision Fort Worth members about the future state of our city, and their role in creating a vision for it now, they become quite passionate.

3. How can the Chamber build more membership?

We were talking about this the other day, and somebody said that when a Chamber member drops their membership, they usually say, “We just don’t have the time or money.” It’s much more difficult to say “we don’t see the value of our membership” because then they might have to explain what that means.

The Chamber is the most effective vehicle through which a local business can leverage its voice at City Hall or in Austin or in Washington, DC. This is important all the time, but it’s particularly so today, with public budget deficits, a volatile economic environment, and an unfriendly tax outlook. How can any company, large or small, go it alone in today’s unsure world? We must make sure that this message gets out there, and it is incumbent on Chamber leadership to make it so.

4. What’s a key area of focus for economic and workforce development?

As we face a multi-billion dollar budget shortfall in the 82nd legislative session it will be imperative that we advocate on behalf of public education to ensure appropriate funding for our greatest assets, our children. With those same budget pressures in mind, we must also monitor the status of the state’s economic development incentive tool kit to make sure this set of valuable programs is not jeopardized.

5. What government issues may dominate the coming year?

Hands-down, it’s the city budget. I’m not sure how we can have a $70+ million deficit and keep parts of our city services off-limits when it comes to making hard decisions. The citizens of Fort Worth are already carrying one of the heaviest tax burdens in the land. I am confident that our public officials will make the right choices, but they need the support and partnership of our business leaders, and that means the Fort Worth Chamber of Commerce.

On the federal level, we will continue to assess the impact of healthcare reform on business and the healthcare industry and monitor the status of “Cap and Trade” (ACES) legislation. On the state level, we must continue our efforts to improve our air quality, ensure the availability of long term water resources and tackle the transportation challenges of mass transit and highway funding.

If you’re reading this, and you’re not a member of the Chamber, we need you, we need your input, we need your voice!

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J.P. Morgan

Fort Worth Chamber of Commerce Board of Directors

DFW International Airport, North Texas’ most powerful economic engine, is poised to throttle up its economic impact – a force that pumps more than $16.6 billion into North Texas, a third of the $48 billion that Texas airports generate.

Operations and plans are in place “to make the airport even more globally competitive,” said David Magaña, public affairs manager.

In recognition of such exceptional contributions to Fort Worth’s vitality, the Fort Worth Chamber of Commerce will honor DFW with the Chairman’s Spirit of Enterprise Award at the Chamber’s June 8 annual meeting at The Worthington Renaissance Fort Worth Hotel.

“This award expresses our deep appreciation of all that DFW International Airport does to make this region an economic powerhouse,” said Wes Turner, outgoing Chamber chair. He and the Chamber’s three most recent chairs selected the recipient. “Every day in so many ways, the airport moves us forward,” Turner said. “They are a brilliant example of enterprise.”

“We at DFW are truly honored to have earned the Fort Worth Chamber’s Spirit of Enterprise Award,” said airport CEO Jeff  Fegan. “It means a great deal to our board and our management team.

“DFW strives every day to continue our mission of bringing economic development and opportunity to the citizens of North Texas, and this award is a testament that our efforts are providing benefit and value for the region.”

Those efforts gained added momentum early this year when the DFW Foreign Trade Zone gained approval to operate in the six-county North Texas region with new federal guidelines that will provide eligible businesses with foreign trade designation on an accelerated, simplified basis.

The approval applies to Tarrant, Dallas, Collin, Denton, Grayson and Rockwall counties and is “a strong validation of the international business climate in North Texas,” Fegan said.

International cargo operations have climbed to record levels, Magaña said, while airport planning is underway for seamless links with the recently launched $1 billion DFW Connector project that will transform highway infrastructure on the airport’s north end and double the amount of traffic flowing through the airport.

Additionally, preparations have begun for the $1.8 billion renovation of 36-year-old Terminals A, B, C and E. Work will launch following next year’s Super Bowl at Cowboys Stadium in Arlington.

“And we continue to bring in commercial development projects that make sense for (companies) that need air freight,” Magaña said. The Dallas Cowboys recently moved their merchandising group, Pro Shops and Blue Star Graphics and Design operations into their new 400,000-square-foot facility near the airport’s foreign trade zone.

A sampling of business activity at DFW reflects significant airport momentum.

Cargo operations: In March, D/FW International Airport was named “Best Cargo Airport in North America” in the half-million to 1-million tonne category by Air Cargo World, the freight industry’s leading global publication. The designation was based on a survey of cargo airlines.

“We’re up to serving 14 major cargo hubs around the world, utilizing 13 cargo carriers,” Magana said, “and we just picked up new service to Guadalajara, Shanghai and Sydney.”

Asian cargo carriers account for about two-thirds of the growth, he said. “Cargo has increased fivefold since 1993 when we were handling about 60,000 metric tons. Now, we’re handling nearly 300,000 metric tonnes of cargo annually.”

Rail service: Magaña said the airport is on track with The T (Fort Worth Transportation Authority) and Dallas Area Rapid Transit (DART) to bring commuter trains from The T’s Trinity River Express and DART’s orange line into the airport from the north entrance.

“The latest plan I’ve seen has The T and its commuter rail going along the Cotton Belt line through Grapevine and on into the airport while DART brings its orange line light rail system to D/FW.”

Officials are aiming for service by 2013, but trains “should be pulling into a station between Terminals A and B (no later than) 2014,” he said.

Super Bowl-related activity includes preparation of a permanent new general aviation facility to handle event-generated private and corporate air traffic. The $3 million project will give a 28,000-square-foot former American Eagle terminal the capability to handle about 70 private aircraft, Magaña said, and will supplement a smaller general aviation site that can accommodate about 30 aircraft.

Ground-up renovation of terminals A, B, C and E will be “a slow-moving process” that should be complete by 2017, Magaña said, but will will significantly improve passengers’ experience. Work will begin with Terminal A and will minimize impact on travelers. The work will involve far more than new facades and interior cosmetics.

“You’ll see a much greener DFW in terms of the efficiencies of technology that we can put into play,” Magaña said, including high-efficiency heating, air conditioning and plumbing. Already, he added, a new high-efficiency plumbing system is “saving water and energy by pumping half the water now in 77 bathrooms across the airport.”

Passenger flow through terminals will move from security checkpoints into upgraded concession and retail areas similar to the “village” concept in futuristic Terminal D – “the best passenger terminal in the world,” Magaña said.

Security improvements will include repositioning checkpoints perpendicular to their current positions to create more room for screening and future equipment.

Plans respond to passenger feedback, Magaña said — and the region’s needs. “This should carry the airport into the next century. It’s really an investment in the future of North Texas.”

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DFW International Airport
http://www.dfwairport.com/

History of DFW International Airport.
http://www.dfwairport.com/visitor/history.php

DFW International Airport video
http://www.youtube.com/watch?v=EbQjdyy5Fr8

At first glance, Jeffrey Garten’s serene poise may belie his former service as a captain in the U.S. Army’s Special Forces.

His easy smile may hint of patrician breeding suitable for his Ivy League career as Juan Trippe professor of international trade and finance at the Yale School of Management. And he’s a gracious complement to his celebrity wife, Ina, the Television Food Network’s elegant “Barefoot Contessa.”

But, as Business Week noted in 1995 when Garten was heading to Yale to serve as dean of the Yale School of Management and William S. Beinecke Professor in the Practice of International Trade and Finance, “he’s no tweedy academic.”

Garten, who served in economic and foreign policy roles for the Nixon, Ford, Carter and Clinton administrations, is recognized globally as an authority on international business affairs, finance and trade.

Jeffrey Garten

He will keynote the Fort Worth Chamber of Commerce’s 128th annual meeting June 8 at the Worthington Renaissance Fort Worth Hotel with a look at how decisions made in Washington impact U.S. and global markets.

Garten regularly shares his expertise in commentaries for leading news outlets. He tempers his candor with eloquence but speaks straight to an issue. Consider, for example, his May 7 column in Newsweek headlined “Moneymen are still calling the shots.”

“We are entering the Era of Regulation, and yet it will still be the financial markets that decisively push our leaders in one direction or another,” he wrote.

“Not only in the U.S., but around the world, markets still play the role of disciplinarian when our elected leaders cannot make hard decisions, and the financial markets still cast the deciding votes about how things work—in the form of currency movements, bond prices, equity values, and the cost of credit default swaps—even more so than the votes of millions of citizens at the ballot box.”

And, he notes, “Governments are usually fighting the last war. Markets, on the other hand, are forward looking.”

His insight has long proved its value. A 1999 essay he penned for Foreign Affairs, headlined “Lessons for the Next Financial Crisis,” carries a familiar ring as he argues that “no one ever really had a clear picture of the global financial system, even before today’s crisis-ridden uncertainties.

“It is not just that over $1.5 trillion in currency changes hands every day, nor that understanding some of the newer financial instruments requires a background in quantum physics, nor that the range of market players — from banks to hedge funds — keeps expanding, nor that the variety of countries participating in the global economy keeps growing.

“Besides all this, there is also a broad range of regulatory, supervisory, and political systems, and there are disputes about what political, economic, and social mechanisms are required to underpin modern capitalism.

“Not only do these mind-boggling complexities make it difficult to examine what happened and why, but the sense that the worst aspects of the crisis are over could erode the determination of weary crisis managers to take the painful measures necessary to prevent another calamity.”

Garten assesses horizons with neverending vigilance. When he considers developments regarding China and U.S. policy, he sees disquieting trends. He addressed his concerns in a recent online column for The Daily Beast, a noted Web-based aggregator and originator of news and opinion.

“We’re Handling China All Wrong,” the headline stated as Garten wrote that “the U.S. no longer has the leverage to go it alone with China.

“China is in its third decade of economic growth averaging some 10 percent each year. Over that period it has transformed itself from being a poor backwater, lifting some 200 million people out of poverty, and becoming the world’s second largest economy, the world’s largest exporter, and the world’s most important creditor.

“It is establishing world leadership in green-energy industries, clearly a critical sector for the future, and may well emerge as a major competitor with the U.S. in manufacturing automobiles and some aspects of aerospace. In other words, the trajectories of the U.S. and China are moving in dramatically different directions.”

Garten welcomes one trajectory, however – the route home to Ina, his chic wife of more than 40 years. There’s special food for thought there. Like the dinner menu.

A look at Jeffrey Garten:

“A Trade Warrior Goes to Yale.”
http://www.businessweek.com/1995/42/b344660.htm

“Moneymen are still calling the shots”
http://www.google.com/search?hl=en&q=%22Moneymen+are+still+calling+the+shots%22&aq=f&aqi=&aql=&oq=&gs_rfai=

“Lessons for the Next Financial Crisis”
http://www.foreignaffairs.com/articles/54800/jeffrey-e-garten/lessons-for-the-next-financial-crisis

“We’re Handling China All Wrong”
http://www.cfr.org/publication/21470/daily_beast.html

TV Guide’s look at Ina Garten
http://www.tvguide.com/celebrities/ina-garten/214855

Data provided by Strategic Insight Group

Intelligence Research Partner of the Fort Worth Chamber of Commerce

The JPS Health Network announced that it has been verified as a Level 1 Trauma Center, the only such center in Tarrant County and the highest designation for a trauma center. As a Level 1 Trauma Center, JPS is recognized as having services that can meet almost every emergency and trauma need. The services also meet criteria regarding capabilities and institutional performance.

Fort Worth Business Press, Jan. 7, 2010

The Tarrant County Regional Water District has received $101.6 million in financial assistance from the Texas Water Development Board to help with the design and planning of a 179-mile pipeline that will bring more water from East Texas to the Metroplex.

Star-Telegram, Jan. 28, 2010

Residents in the Alliance area in far north Fort Worth will be getting a new hospital close to home in late 2011. Texas Health Resources plans to build a full-service hospital off Golden Triangle Boulevard, east of Interstate 35W.

Star-Telegram, Jan. 7, 2010

A deal approved Thursday all but assures that the proposed Southwest Parkway toll road in Fort Worth will be under construction later this year. The Texas Transportation Commission agreed to use the state’s gas taxes as collateral on two projects being developed jointly – Southwest Parkway and Texas 161 in Grand Prairie – even though those projects are toll roads.

Star-Telegram, Jan. 29, 2010

In Texas, where Guidepoint operates its technology, product development, call center and consumer service operations, the company will be moving into a new facility just west of downtown Fort Worth in February 2010. The new 8,800-square foot facility more than doubles the company’s capacity, with 75 call-center seats, a lab and vehicle work area, dedicated training facilities and product development offices.

TendersInfo, Jan. 22, 2010

More links:

• View the full list of Economic Updates online.

So Chamber members get a brief, informal survey in the e-mail, asking about businesses’ holiday spending, given the tough economy. Cutting back? Still gonna party?

“Argh,” one reply said.

“We refuse to participate in the fear,” another said. “Our employees need their bonuses and party more than ever.”

Glad you asked, the response indicated, as more than 850 members (a 17 percent response) weighed in quickly, sharing tidbits about internal celebration plans. Turns out the holiday spirit will light up many workplaces across the area.

Some 47 percent of respondents said the economy won’t change their business’s holiday activities while 42 percent said they’ve scaled back. Spending on customers and clients won’t change, 56 percent said, but 35 percent said they won’t spend as much.

Nurturing holiday spirit is “very important to employee morale and customers,” 67 percent said, and “somewhat important” to 30 percent.

Charitable giving with money, clothes and gifts is a key part of many businesses’ observances. The annual blowout is budgeted here and there, but the recession Grinch has forced some to cancel plans. Others will celebrate in January because the holiday season is such a busy time for them.

Figuring it’s the thought that counts, some businesses will send e-cards to customers and clients instead of traditional greetings.

Here’s how some respondents described their plans:

“Giving our own wine, and giving gift baskets to customers who do not drink.”

“We have an awards banquet to avoid offending people of different faiths.”

“We have gone through significant cost-cutting in the last nine months. It would be inconsistent to spend money for holidays this year.”

“Working with teams to give more time and treasure to the community.”

“Our firm has not felt the pinch as most companies have financially and we have been blessed to be able to continue our tradition.”

“Hosted family at Cats game this summer in lieu of Christmas party.”

“We are still sponsoring two families, but we are also filling a bag for the troops in Iraq.”

“We are non-profit, and this is important to the staff since we could not give raises this year.”

“Owner and president for last two years, cook-out for the employees at the office with steaks, etc.”

“In this day and age, making sure we continue to foster community, goodwill and good spirits is very important.”

Survey Results:

Question #1: What’s your business’s internal holiday tradition?

Question #2: How has the economy brought change to your business’s holiday activities, if at all?

Question #3: How have you changed holiday spending on customers and clients, if at all?

Question #4: Is holiday spirit important to nurture?

Give the local economy and your business a shot in the arm this evening at the Tarrant Area Trade Show.

Thursday, October 29

4 to 8 p.m.

Will Rogers Exhibits Hall in Fort Worth’s cultural district.

The Tarrant Area Trade Show, coordinated by the Fort Worth Chamber, annually encourages businesses from all industry sectors to bolster the regional economy by trading with each other. This business-to-business event gives dozens of exhibitors and hundreds of potential customers the chance to connect in just one evening.

“This is one of the largest, most invigorating events the Chamber hosts,” said Netty Matthews, vice president of membership. “In this or in any economy, there’s no substitute for face-to-face interaction to build business relationships, and the Trade Show provides a convenient and fun atmosphere for that to occur.”

The event includes a silent auction sponsored by Rogers & Associates with sports, travel and spa packages. The annual “Taste of Tarrant” contest, sponsored by Coors Distributing Company of Fort Worth, will feature local restaurants with complimentary food and beverage samples. A cash bar will also be available.

Other sponsors include Alexander Chandler Realty, Texas Motors Ford, Balcom Agency, CBS Television, Fort Worth Business Press, The Ranch Radio Group, Caffeinated Studio, Data Applications Corporation, North Texas Specialty Physicians and The T.

Chamber members receive complimentary tickets at the door. Cost is $10 for non-members. Get more information at the Tarrant Area Trade Show page.

click to see full-size graphic

Selling companies on relocating to Fort Worth usually involves a lengthy process, but Q-Edge negotiations were finalized in less than four months. Here are highlights.

Early January: Jackson & Cooksey corporate real estate firm contacts Fort Worth Chamber regarding a Global Fortune 500 company’s interest in relocating to the Metroplex.

Late January: Chamber is asked to submit an incentive proposal within 48 hours. David Berzina, executive vice president of Economic Development, shares criteria with Chamber partners in the public and private sectors: Hillwood Properties, City of Fort Worth, Workforce Solutions for Tarrant County and Tarrant County College, the governor’s office and the state economic development office.

Jay Chapa, Fort Worth director of Economic and Community Development, and Berzina develop a tax abatement plan contingent on City Council approval.
Each partner delivers details for the proposal.

Incentive proposal compiled and written by Chamber and delivered on time to Jackson & Cooksey.

Early February: Q-Edge identified as the prospect. In response to Q-Edge request, proposal is strengthened with emphases on Fort Worth’s business environment and cultural strengths. Q-Edge team quietly tours the area unannounced, including competing sites.

Late February: The Chamber, partners and Q-Edge hold final negotiations. In executive session, Chapa briefs city council about developments.

Early March: Chamber learns that Q-Edge has selected Fort Worth and 365,440 square feet of space in the former Nokia plant at Alliance. The move is expected to bring up to 500 jobs in three years and economic impact of more than $700 million over 10 years.

March 31: During a briefing, City Council members signal unanimous support for $158,850 in tax abatements over the next 10 years.

April 1: Q-Edge publicly verifies selection of Fort Worth.

April 14: City Council approves tax abatement.

Dr. Ray Perryman

Without the Barnett Shale play, today’s regional economy would look far different.

M. Ray Perryman, founder and president of The Perryman Group, an economic and financial analysis firm based in Waco, will examine that what-if scenario, keynoting the State of Energy Luncheon March 11 during the third annual Barnett Shale EXPO at the Fort Worth Convention Center. (See details in Calendar of Events.)

The presentation will add vital context to results of Perryman’s Economy Impact Study that will provide luncheon attendees with analyses of how Barnett Shale activity has affected local economies.

With his report in its final stages, Perryman shared the following preliminary overviews that he will discuss in detail:

– Energy markets are inherently volatile, and unanticipated price fluctuations are the norm. Exploration, drilling, and production will go down when prices are low, but that in no way diminishes the long-term viability of the Barnett Shale.

Natural gas is a “clean” fuel that will be in high demand over time, and an upward trend in prices is anticipated.

– The economy of Fort Worth and the entire region is fundamentally stronger and more diverse as a result of the Barnett Shale.

Simulations of business activity with and without the Barnett Shale reveal that billions of dollars in output and tens of thousands of jobs have been added.

– The regional economy is much better positioned to withstand fluctuations in other sectors and other aspects of the national economic slowdown as a result of the Barnett Shale.

– The fiscal resources provided to local governments as a result of the Barnett Shale continue to provide a valuable source of competitive advantage.

– The energy resources of the Barnett Shale are a valuable national asset that will be a source of stimulus for decades to come. Among the many benefits, they have enabled the Fort Worth area to develop a notable corporate and infrastructure presence in an important industrial segment.

At last year’s Barnett Shale EXPO, Perryman’s report noted that, based on year-end 2007 levels, benefits for the area were growing faster than expected.

“In fact,” his study said in March 2008, “based on year-end 2007 levels, the area was experiencing gains of $8.2 billion in annual output (8.1% of total output) and 83,823 jobs (8.9% of total jobs), up from $5.2 billion in annual output and 55,385 permanent jobs last year. The performance represents a net gain of more than 50 percent in a single year.”

Even though the national economy encountered severe difficulties in the months that followed, Perryman’s outlook held true: “The Barnett Shale is a catalyst for ongoing economic vitality. Recent growth has exceeded expectations, and the resulting business and investment activity will help insulate the regional economy from the national slowdown.”

That was the case, as Perryman’s 2009 report will show.

More links:

• The Perryman Group
• Perryman’s 2008 Barnett Shale assessment
• Barnett Shale Energy Education Council
• Railroad Commission of Texas Natural Gas Trends 2009