ATX Economy

Austin economy spanks the competition

High-tech, a booming film industry and the University of Texas all helped propel Austin to the top of Forbes’ 2008 list of America’s Fastest Growing Metros.

The magazine ranked Austin No. 1 among the nation’s 100 largest metropolitan areas. The list sorted cities by their anticipated gross domestic product growth between 2007 and 2012. Austin’s GMP, or the value of goods and services produced in the area, is expected to climb 32 percent over the five-year period.

Forbes credits the local boom to high-tech employers like Dell Inc. (NASDAQ: DELL) and IBM (NYSE: IBM) as well as the University of Texas, which is producing ample engineering talent. The Forbes article points out that all high growth cities share several key characteristics with Austin: They are tech hubs in close proximity to universities with growing population bases.

The regions of the country with the fastest growing metro areas overall are the Southeast and West. Forbes credits the lower costs of living and doing business in those areas for their higher anticipated performance.

Census: Austin eighth fastest growing city in U.S.

(Demographics : Austin-Round Rock) 7/10/2008

Austin added 18,000 new residents from July 2006 to July 2007, making it the eighth fastest growing city in the nation during that period, new data from the U.S. Census Bureau shows. Austin’s population in July 2007 was 743,074, up 2.4 percent from the prior year. Austin was the fourth fastest growing city in Texas during that same period, falling behind Houston, San Antonio and Fort Worth. With an influx of 39,000 new residents, Houston was the fastest growing city in the country. Four Austin suburbs were among the 25 fastest growing cities in Texas during the study period, according to an analysis of the Census data by the Capital Area Council of Governments. Cedar Park was the 11th fastest growing city in the Lone Star State. Round Rock ranked 16th, Georgetown 19th and Pflugerville 22nd.

Airport’s revenue increasing despite airline industry woes

(Infrastructure & Transportation : Austin-Round Rock) 7/18/2008

(Austin) – Despite a national airport slowdown driven by airline woes, Austin-Bergstrom International Airport (ABIA) will surpass budgeted revenue projections as the city finishes the fiscal year. ABIA’s total revenue was $88.5 million in fiscal 2007-08-to-date, up from $81.9 million last fiscal year. Its expenses were $78.4, meaning almost $19 million went into the airport’s capital improvement fund this year. That fund goes toward improvements like runway construction and security and longer-term projects such as a possible expansion.

ABIA’s health is due, in large part, to a continued emphasis on nonairline revenue – concessions, parking fees and car rentals – that experts say is key to navigating airports as airlines experience turbulence. Parking revenue, which accounts for the airport’s largest source of nonairline revenue, was up almost 10 percent compared with the same period last year, and car rentals and fees were up almost 7 percent. Rental revenue from concessions was up almost 4 percent. Also, traffic at ABIA this May represented an increase of 5.5 percent over last May, and January-through-May traffic was up 5 percent over the same period last year. ABIA has added 11 nonstop flights since May. In the fall, Southwest Airlines will add frequency to its Los Angeles and Denver services, and American will increase its Dallas-Fort Worth flights.