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Federal Reserve
Bank of Dallas
San Antonio
Branch
Winter 2007/08
Corpus Christi:
An Economy
in Transition
S
ome sectors
are declining in
importance, such
as oil and gas,
while others are
expanding, such
as health care,
alternative energy
and education.
Vista
South Texas
Economic Trends and Issues
Corpus Christi tempts tourists with miles of beaches, sea
breezes, an arts and museum district, waterfront restaurants, shopping and more. It is also home
to a major seaport, Texas A&M
University–Corpus Christi, a large
health care system, military bases,
refineries and chemical plants. Port
activity and tourism remain important components of the Corpus
Christi economy. However, some
sectors are declining in importance, such as agriculture, oil and
gas, petrochemicals and military,
while others are expanding, such
as health care, alternative energy
and education.
Jobs in the Corpus Christi metropolitan statistical area (MSA)
have been growing steadily since
1970.1 The pace has been slightly
faster than in the U.S., but less than
in Texas and about average for
other comparable metros. Recent
gains in energy prices, expansion
by Texas A&M–Corpus Christi, low
housing costs, increased activity
at the Port of Corpus Christi and
the continued retirement of baby
boomers suggest increased opportunity for growth in Corpus Christi
in the near future.
ranching in South Texas in the
late 1800s created demand for port
activity out of Corpus Christi and
set the stage for fast growth in the
early 1900s. In 1874 the main sea
channel was dredged to a depth
of 8 feet to allow large steamers to
navigate through the channel. The
first railroad reached the town in
the mid-1870s, and by 1914 there
were four. Tourists soon rode
the rails to Corpus Christi, and a
building boom began for hotels,
cottages and boarding houses.
Between 1900 and 1910, Corpus Christi’s population rose at a
strong annual percentage rate
of 8.6 percent (Table 1). Growth
came to a sudden halt when a
powerful hurricane hit the city
in 1919. Spurred by the development of a deep-water port, Corpus
Christi’s population returned to
rapid growth between 1920 and
1930.
Although the Great Depression slowed growth in the area,
the discovery of oil in Corpus
Christi in 1930 and the continued
development of the port allowed
the region to post an impressive
annual average growth rate of 4.9
percent between 1930 and 1940.
Strong growth continued during
History of Corpus Christi Economy and immediately after World War
Corpus Christi has a long his- II as military expansion spurred
tory as an agricultural, tourism, activity. After the 1940s, the popumilitary, mining and port region.2 lation growth rate began to subThe growth of cattle and sheep side until it hit a low at 0.7 percent
jobs in January 1982 and only
138,300 jobs eight years later.
Corpus Christi Population by Decades
The 1980s could be described as
the lost decade for the Corpus
Date
Population
Population change
Annual percent change
Christi economy.
1900
12,811
—
—
During the 1990s, job growth
1910
29,262
16,451
8.6
steadily
increased in Corpus
1920
34,193
4,931
1.6
Christi,
the
state and the nation.
1930
75,615
41,422
8.3
Oil and gas prices played little
1940
121,532
45,917
4.9
1950
201,313
79,781
5.2
role in economic activity over
1960
266,594
65,281
2.8
this decade. Instead, a high-tech
1970
284,832
18.238
.7
boom was credited for much of
1980
326,228
41,396
1.4
the economic strength, particularly
1990
349,894
23,666
.7
in the second half of the decade.
2000
380,783
30,889
.8
Corpus Christi’s job growth was
SOURCE: Census Bureau.
similar to the nation’s but much
slower than Texas’ (see Chart
in the 1960s. With the increase Job Growth
2). While Texas benefited from
in energy prices, growth picked
Another indicator of a region’s a thriving high-tech sector, highup in the 1970s, but in the 1980s economic health is job growth. tech growth in Corpus Christi
and 1990s, growth slowed to an In periods of high oil prices, was much more subdued.3 Its job
annual pace of 0.7 and 0.8 per- Corpus Christi and Texas tend to growth rate steadily increased at
cent, respectively.
outperform the nation (Chart 2). a 1.9 percent average per year
During the 1970s and early 1980s, in the 1990s, slightly above the
Migration
when oil prices increased signifi- national pace of 1.8 percent but
Population growth can be cantly, job growth averaged 4.2 below the 2.9 percent growth
divided into net domestic migra- percent in Corpus Christi, 4.7 per- in the state. Austin, which was
tion, international immigration cent in Texas and 2 percent in the at the center of the high-tech
and internal growth (defined as nation. When oil prices began to boom, grew at an impressive 5.5
births minus deaths). Net domes- fall in 1982 and then crashed in percent annual pace.
tic migration (and to a lesser 1986, Corpus Christi and Texas
degree international immigra- both turned down. The refin- Peer MSA Comparison
tion) reflects how attractive a city ing industry also declined during
While the national and state
is to outsiders. If businesses are this time, and combined with averages give a broad perspecthriving and creating high-pay- the energy industry’s slump, this tive on the economic health of a
ing opportunities, net immigra- led to a sharp downturn in the region, areas can differ in growth
tion is usually strong.
Corpus Christi economy. Even depending on attributes such as
Corpus Christi experienced with some job growth in the late population size, weather, cost of
positive net domestic migration 1980s, Corpus Christi had 143,100 living and industry. We selected
through 1997, but it fell to negative in 1998, where it remained
Chart 1
through 2003 (Chart 1). Net doRecent Migration Pattern Not Reflective of a Strong Economy
mestic migration became posiNet migration
tive again in 2004 and 2005, but
4,000
just slightly. International immigration increased somewhat in
2,000
the 1990s, but it too has experi0
enced a general downward trend
in the 2000s. Net internal growth
–2,000
has also slowed since the 1980s,
–4,000
with births decreasing and deaths
increasing.
–6,000
Overall population growth
–8,000
and, in particular, net migration
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
show that Corpus Christi has
grown sluggishly over the past
NOTE: Net migration was zero in 2000 and 53 in 2005.
SOURCE: Census Bureau.
two decades.
Table 1
Vista • Winter 2007/08
Chart 2
Corpus Christi Job Growth Impacted by Energy Prices
Index, January 1970 = 100
330
High oil price
Low oil price
High-tech boom
280
230
Texas
Corpus Christi
180
U.S.
130
80
’71
’73
’75 ’77
’79
’81
’83
’85 ’87
’89
’91
’93
’95
’97
’99
’01
’03
’05 ’07
SOURCES: Bureau of Labor Statistics; Texas Workforce Commission.
10 peer MSAs that have at least
one of these attributes in common with Corpus Christi. Using
the 10 comparison metros and
Texas in the analysis gives an
interesting perspective on economic growth in Corpus Christi.
Many of the peer MSAs that
we selected have a long history
in the oil, gas and petrochemical
industries, are port regions, have
military presence and are areas
with tourism. In addition, most
are home to a college or university. Along the Gulf Coast, the
port regions and refining metros
of Beaumont–Port Arthur, Houston, Lake Charles, Baton Rouge
and New Orleans were chosen.
The port region of Brownsville–
Harlingen was added as well.
Lubbock was incorporated for
its history in oil and military.
Pensacola, Fla., a popular tourist
destination and port region on
the other side of the Gulf of Mexico, was included for paralleling
Corpus Christi in many ways. As
neighbors to Corpus Christi, Austin and San Antonio finished off
the list of 10 peer cities.
To compare Corpus Christi
job growth with the peer cities,
we indexed all to January 1970.
Chart 3 reveals that metro areas
with solid holds in the hightech and tourism industries have
experienced a faster growth rate
than the metros with a heavier
share in energy and petrochemicals. Austin grew briskly (5 percent) and outpaced the next fastest growing cities of San Antonio
(3.1 percent) and Baton Rouge (3
percent). San Antonio has large
tourism and military industries.
Baton Rouge is known for its
high-tech industry and is home
to Louisiana State University.
The cities with a heavier share
in energy industries—Corpus
Christi, Beaumont–Port Arthur
and Lubbock—have seen the
slowest long-term job growth.
Economic Performance: Total
Income and Wages
Population and job growth
are important measures of economic vitality, but income is an
important measure of a region’s
wealth. To understand how Corpus Christi’s income and wages
compare with the 10 peer cities,
we analyze per capita income
and the components of personal
income based on data from the
Bureau of Economic Analysis’
most recent income series in
2005.4
We compare per capita income and wages and benefits for
Corpus Christi with the 10 peer
cities. To determine the purchasing power of wages and income,
we adjust these measures using
the American Chamber of Commerce Research Association
(ACCRA) cost of living index
for 2005. In addition, we look at
the real growth rate of income
and wages from 2000 through
2005 by using the U.S. Consumer
Price Index to account for inflation over the period.
Per capita personal income
in Corpus Christi has remained
at about 90 percent of the state
average since 1980. A growth
rate of 5.67 percent posted in
2005 proves that Corpus Christi
is growing at a pace comparable
with the state’s growth rate of
5.86 percent.
Table 2 shows the per capita
income for Corpus Christi and the
10 peer cities. Corpus Christi’s per
capita income is $28,603, ranking sixth out of the 11 metros.
Chart 3
Metro Areas with Energy and Petrochemicals See Slower Job Growth
Index, January 1970 = 100 Austin, January 1970 = 100
330
280
230
700
San Antonio
Baton Rouge
Houston
Austin
Pensacola
Lake Charles
600
Lubbock
Corpus Christi
500
New Orleans
Beaumont–Port Arthur
400
300
180
200
130
100
0
80
’71 ’73
’75 ’77
’79 ’81
’83 ’85 ’87 ’89 ’91 ’93 ’95 ’97
’99 ’01 ’03 ’05 ’07
NOTE: Brownsville is excluded because its employment data extend back only to 1980.
SOURCES: Bureau of Labor Statistics; Texas Workforce Commission.
Vista • Winter 2007/08
Houston ($39,199) and Austin
($34,441) top the list, and a spread
of only $2,513 separates the next
seven cities. The table also lists
the adjusted per capita income
for the 11 metros. Again Houston
($43,994) and Austin ($35,470)
rank Nos. 1 and 2, respectively,
and Corpus Christi ($32,320)
moves up one spot to No. 5.
This adjustment also narrows the
gap between Corpus Christi and
San Antonio ($33,546).
Adjusted and unadjusted wages
and benefits follow a pattern similar to that seen in per capita
income (Table 3). Corpus Christi’s wages and benefits are close
to average for the 10 peer cities
at $41,850; adjusting for the cost
of living, they look much higher
in comparison at $47,289.
Low wage costs can attract
industries to a city. To see how
wages in Corpus Christi compare with the 10 peer cities, we
selected the top occupations in
high-, middle- and low-wage categories (Table 4). Corpus Christi
wages are less than the peer city
average in all but one occupation in the high-wage category,
all but three in the middle-wage
category and all but two in the
low-wage category. This suggests
that the cost of labor in Corpus
Christi is less than for most peer
cities.
High cost-of-living-adjusted
wages can attract workers to a
region. Although industry wages
tend to be lower in Corpus Christi,
we need to consider the relatively
inexpensive cost of living. To
calculate the average cost-of-living-adjusted wage for the peer
MSAs, we divide the average
nominal wage rate by the average ACCRA cost of living index
for the MSAs. Adjusting the wages
creates a stark difference from the
nominal wage results (see Table 4).
For most occupations, cost-ofliving-adjusted wages in Corpus
Christi are higher than the peer
MSA average.
The combination of high real
wages and low nominal wages
can act as a magnet for growth
in an area since it is beneficial
for both companies and workers. Corpus Christi’s relatively
low nominal wages are attractive to employers, while the relatively high real wages are attractive to workers. Corpus Christi’s
wages are also growing strongly.
From 2000 through 2005, wages
including benefits have risen at
an annualized rate of 1.91 percent, outpacing all peer cities
except Pensacola.
Education
Even though Corpus Christi’s cost-of-living-adjusted wages
are near the middle of the peer
MSAs, wages are lower than
in neighboring MSAs of Austin, San Antonio and Beaumont.
Many times, differences in wages
and rates of job growth can be
explained by differences in the
skill level of the labor force and
the educational attainment of the
population. Cities with a high
percentage of college graduates,
such as Austin, have recorded
both strong job growth and high
wages. Across the peer MSAs
studied, the greater the percentage of adults with at least a
bachelor’s degree, the higher the
average wage. Thus, one strategy to improve wages in Corpus
Christi is to provide opportunities for college education to a
greater percentage of the population.
While education statistics for
Corpus Christi follow a pattern
similar to Texas’, they exhibit
a relatively less-educated population when compared with
the peer cities (Table 5). Corpus Christi ranks below most of
the peer MSAs, with only 77.1
percent of the adult population
having at least a high school
Table 2
2005 Per Capita Income, Adjusted for Cost of Living
Adjusted
MSA
Houston–Sugar Land–Baytown
Austin–Round Rock
New Orleans–Metairie–Kenner
San Antonio
Baton Rouge
Corpus Christi
Beaumont–Port Arthur
Pensacola–Ferry Pass–Brent
Lubbock
Lake Charles
Brownsville–Harlingen
Per capita
income
(dollars)
39,199
34,441
30,611
30,393
29,654
28,603
28,550
28,217
28,098
26,038
17,410
Rank
Per capita
income
(dollars)
Rank
1
2
3
4
5
6
7
8
9
10
11
43,994
35,470
29,952
33,546
29,654
32,320
31,652
29,060
32,672
26,927
19,606
1
2
7
3
8
5
6
9
4
10
11
Change 1999 – 2005
(percent annual)
1.06
–.61
1.96
.76
1.66
2.08
1.66
1.71
1.25
1.51
1.20
Rank
9
11
2
10
4
1
5
3
7
6
8
NOTES: ACCRA data unavailable in second quarter 2005, so third quarter 2005 used. Data end at 2004 for Lake Charles and New Orleans.
SOURCES: Bureau of Economic Analysis; Bureau of Labor Statistics; Council for Community and Economic Research, ACCRA Cost of Living Indexes; authors’
calculations.
Vista • Winter 2007/08
Table 3
2005 Wages and Benefits Per Worker, Adjusted for Cost of Living
Adjusted
MSA
Houston–Sugar Land–Baytown
Austin–Round Rock
Beaumont–Port Arthur
New Orleans–Metairie–Kenner
San Antonio
Pensacola–Ferry Pass–Brent
Baton Rouge
Lake Charles
Corpus Christi
Lubbock
Brownsville–Harlingen
Per worker
wage
(dollars)
57,070
52,818
45,447
45,242
44,375
42,442
42,344
41,904
41,850
36,890
30,396
Rank
Per worker
wage
(dollars)
Rank
1
2
3
4
5
6
7
8
9
10
11
64,052
54,395
50,385
44,268
48,979
43,709
42,344
43,334
47,289
42,895
34,230
1
2
3
6
4
7
10
8
5
9
11
Change 1999 – 2005
(percent annual)
Rank
1.68
.27
1.70
1.71
1.75
2.08
1.38
1.41
1.91
1.63
1.06
6
11
5
4
3
1
9
8
2
7
10
NOTES: ACCRA data unavailable in second quarter 2005, so third quarter 2005 used. Data end at 2004 for Lake Charles and New Orleans.
SOURCES: Bureau of Economic Analysis; Bureau of Labor Statistics; Council for Community and Economic Research, ACCRA Cost of Living Indexes; authors’
calculations.
Table 4
2005 Wages by Occupation for Corpus Christi and 10 Peer Cities
Average wages (dollars)
Corpus Christi
Peer cities
Difference
Adjusted average wages (dollars)
Corpus Christi
Peer cities
Difference
High-wage
Legal
Management
Architecture and engineering
Computers and math
Life, physical and social science
Health care practitioners
Business and finance
70,580
68,440
56,890
52,580
52,270
51,370
47,860
68,789
74,951
58,105
55,201
55,355
54,002
49,381
1,791
– 6,511
–1,215
– 2,621
– 3,085
– 2,632
–1,521
79,751
77,333
64,282
59,412
59,062
58,045
54,079
73,352
79,922
61,959
58,862
59,027
57,584
52,656
6,400
–2,589
2,323
550
35
462
1,423
Middle-wage
Education, training and library
Installation, maintenance and repair
Arts, entertainment and media
Production
Construction and extraction
Community and social services
Protective services
37,280
33,700
33,280
32,070
30,090
29,540
27,480
41,450
33,513
34,396
30,433
29,318
34,428
30,524
– 4,170
187
– 1,116
1,637
772
– 4,888
– 3,044
42,124
38,079
37,605
36,237
34,000
33,379
31,051
44,199
35,735
36,678
32,451
31,263
36,712
32,548
–2,075
2,344
927
3,786
2,737
–3,333
–1,497
Low-wage
Sales and related
Transportation and material moving
Office and administrative support
Farming, fishing and forestry
Health care support
Building and grounds
Food preparation and serving
Personal care and services
26,610
26,450
24,210
21,560
19,700
17,050
15,210
14,070
27,087
25,396
25,511
22,541
19,310
17,352
15,630
17,455
– 477
1,054
–1,301
–981
390
–302
– 420
–3,385
30,068
29,887
27,356
24,362
22,260
19,266
17,186
15,898
28,884
27,081
27,203
24,036
20,591
18,503
16,667
18,612
1,184
2,806
153
326
1,669
763
520
–2,714
NOTE: Differences may not add up due to rounding.
SOURCES: Bureau of Labor Statistics; Metropolitan Area Occupational Employment and Wage Estimates, May 2005; authors’ calculations.
Vista • Winter 2007/08
diploma or equivalent. Corpus
Christi’s statistic for college graduates with a bachelor’s degree or
higher performs similarly. Austin
tops the list with 86.9 percent of
its population graduating from
high school and 39.1 percent
holding a bachelor’s degree or
higher.
Shift Share Analysis
of Employment
To better assess Corpus
Christi’s economic performance,
we use a shift-share analysis to
evaluate if the city’s growth is
attributed to its industry mix or
to differences in growth within
industries. To produce a more
informative and accurate analysis, we use the North American
Industry Classification System’s
three-digit industry detail that
defines 86 industries.
This analysis reveals that
Corpus Christi’s job growth was
slower than the Texas average
from 1990 to 2005 generally due
to slower growth within industries and not due to the industry mix. The industry structure
in Corpus Christi in 1990 was
slightly weighted toward those
that, in Texas, grew faster than
average over this period. If these
86 industries had grown at the
same rate in Corpus Christi as in
the state, Corpus Christi would
have outperformed Texas in job
growth.
We looked at the top 10 and
bottom 10 industries in employment growth during this period.5
We first filtered out the smallest industries by requiring that
each have at least 0.25 percent
of total employment in 2005 for
growth industries and at least
0.25 percent in 1990 for declining industries. Corpus Christi
and Texas shared three of the
10 growing industries and five
of the 10 declining industries,
suggesting that Corpus Christi’s
slower growth rate was due to
slower growth within its industries. Four of the five shared
declining industries contracted
at a notably more rapid rate in
Corpus Christi, while the differences in growth rates of the
three shared growing industries
are less noteworthy. The greater
declines in chemical manufacturing, oil and gas extraction, pipeline transportation and apparel
manufacturing outweighed the
growth in the health care and
service industries.
The high-tech sector also
contributed to slower growth in
Corpus Christi relative to Texas.
From 1990 through 2000, Texas
high-tech employment grew at an
annualized rate of 4.92 percent,
while the industry increased
only 1.32 percent in Corpus
Christi. Although the high-tech
bust negatively impacted Texas
more than Corpus Christi, the
overall state growth rate in the
high-tech sector since 2000 (1.34
percent) has remained higher
than Corpus Christi’s (0.51 percent).
Future Opportunities
In the past, Corpus Christi
job growth moved with large
swings in energy prices. However, the increasing share of services in the economy, combined
with growth in other industries,
is decreasing energy’s economic
impact. The city’s job growth in
the past 10 years has become
more linked to job growth
nationally and less linked to
energy prices (Chart 4). Corpus
Christi will continue to evolve,
with many potential areas for
growth, including port expansion and development as a center for baby boomer retirement,
health care, tourism, oceanic
research and alternative energy.
The Port. Texas is outpacing the U.S. in port growth and
is home to four of the nation’s
top 20 port districts. Corpus
Christi’s port is one of the coun-
Table 5
Corpus Christi Has Relatively Low Educational Achievement
High school
graduate or higher
(percent)
Bachelor’s
degree or higher
(percent)
Graduate or
professional degree
(percent)
2005
nominal wages
(dollars)
Austin–Round Rock
Houston–Sugar Land–Baytown
Lubbock
New Orleans–Metairie–Kenner
San Antonio
Pensacola–Ferry Pass–Brent
Baton Rouge
Corpus Christi
Lake Charles
Beaumont–Port Arthur
Brownsville–Harlingen
86.9
78.8
79.9
83.5
80.6
86.4
84.2
77.1
79.5
84.5
61.3
39.1
27.9
25.8
25.6
24.2
23.8
23.7
19.1
18.9
16.3
13.7
13.0
9.3
9.3
9.3
8.7
7.5
8.5
6.6
6.9
4.4
4.4
52,818
57,070
36,890
45,242
44,375
42,442
42,344
41,850
41,904
45,447
30,396
Texas
78.8
25.2
8.2
MSA
SOURCES: Census Bureau; Bureau of Economic Analysis.
Vista • Winter 2007/08
Chart 4
Corpus Christi Shows Decreasing Dependence on Oil and Gas
(Energy prices vs. job growth difference between Corpus Christi and U.S.)
Inflation-adjusted dollars* Job growth difference
140
10
8
120
6
Job growth difference
100
4
2
80
0
60
Oil
–2
–4
40
–6
20
Natural gas
–8
0
’74
’76
’78
’80
’82
’84
’86
’88
’90
’92
’94
’96
’98
’00
’02
’04
’06
–10
* Dollars per barrel for oil; dollars per thousand cubic feet x 10 for natural gas.
SOURCES: Texas Workforce Commission; Oil and Gas Journal; authors’ calculations.
try’s fastest growing, servicing
about 7,400 vessels in 2005, with
the value of international trade
through the port increasing at a
rate of 13.7 percent average per
year over the preceding nine
years and 27.9 percent average per year over the preceding
three years.
In total vessel value and
weight of imports and exports,
the Port of Corpus Christi is
large but well behind the Port
of Houston. For 2005, Houston’s
vessels had over $8.5 billion in
cargo, while Corpus Christi’s had
slightly over $1.5 billion. Total
vessel weight tells the same story,
with the Port of Houston at 132
million metric tons and the Port
of Corpus Christi at 43 million
metric tons.6 A 2004 Army Corps
of Engineers ranking places Corpus Christi as the sixth largest
port by shipping weight and
puts Houston second. This difference can also be seen in the
2005 share of Texas’ total trade
value going through the Port of
Corpus Christi, which was 4 percent to Houston’s 22 percent.
Overcrowding and higher
costs at West Coast ports have
likely increased cargo flow into
the Port of Corpus Christi. The
La Quinta Trade Gateway project now under construction will
increase the channel depth, al-
lowing the port to accommodate
up to three of the largest container ships at one time. Projects
such as this will improve the Gulf
port’s ability to attract large container ships from Asia because
of the speed and reduced cost at
which the port is able to unload
cargo.
Retirement City. According to a North Carolina Center
for Creative Retirement study
based on the 2005 American
Community Survey, Texas is the
second-most-popular retirement
destination, right behind Florida.
However, as Texas’ popularity
has increased, Florida’s has decreased to its lowest share of retirees in 25 years. The study cited
that, after taking into account retirees who leave the state, Texas
took in $346 million in net new
spending in 2005 from its retired
population.
Corpus Christi’s low cost of
living and natural resources give
it qualities attractive to retirees.
The above-state-average percentage of retirees in Corpus Christi
has likely contributed to increases
within the health care and social
assistance industry. Retirees will
continue to stimulate the Corpus
Christi economy.
Tourism. The number of
visitors to Corpus Christi rose 40
percent between 2000 and 2004,
C
orpus Christi’s
low cost of living
and natural
resources give
it qualities attractive
to retirees.
Vista • Winter 2007/08
according to a study by Texas
A&M University–Corpus Christi
economist Jim Lee. When taking
into account the 19,600 tourism-related jobs, Lee found that
tourism is the second-largest employer in the city.7 The Austin
Core Research Center found that
56 percent of Texas residents
planning a vacation look for a
beach first. While the majority
of tourists in Corpus Christi are
from Texas, the coastal city’s
location and recent citywide WiFi access may entice more outof-state tourists.
Cross-border retailing has
been a huge source of revenue
in border towns for years. To
share in some of the revenue,
San Antonio has created packages for Mexican nationals that
include airfare, shopping, health
care and activities.8 Corpus Christi
offers a beach location close to
Mexico with amenities similar to
San Antonio’s and may be able
to participate in this international
market as well.
Oceanic
and
Energy
Research. Although educational
attainment for Corpus Christi is
lower than that of Texas, the city
has taken steps to provide a more
skilled workforce. Advances and
opportunities in the education
industry are placing Corpus
Christi on the forefront in Gulf
Coast research and increasing the
potential for oceanic studies and
alternative energy exploration at
Texas A&M–Corpus Christi.
The Harte Research Institute for Gulf of Mexico Studies,
a branch of Texas A&M–Corpus Christi, is focusing on sustainability and conservation of
the Gulf of Mexico, a resource
widely used by local, national
and international industries. The
research will be a resource for
future public policy and of interest to all invested in the Gulf.
In June 2007, Corpus Christi’s
neighbor, Ingleside, was selected
as a wind research laboratory,
one of only two in the nation.
According to experts, the laboratory will position the state to be
a leader in this clean and renewable energy source and may lure
turbine and blade manufacturers
to the area. The publicly and
privately funded project could
bring Corpus Christi national recognition and future opportunities.
from Trinity University during
her contributions to this article.
Notes
1
2
Summary
Historically, Corpus Christi
has been tied to port activity and
the energy sector, with the military and tourism helping to diversify the economy. Today, the
expansion of the Port of Corpus
Christi, opportunities in health
care, baby boomer retirement,
and research and development
are adding to the diversification
and the economic potential of
the economy.
An analysis of economic measures for Corpus Christi reveals
strengths and weaknesses. Job
growth is close to the average of
the peer cities that we looked at
and comparable to areas that are
not high-tech oriented. Income
and wages are lower than average but are high when adjusted
for the cost of living. Corpus
Christi’s low nominal wage and
higher real wage are pull factors for growth. In the long run,
wages will depend on educational attainment. Overall, prospects look good for the Corpus
Christi economy, but to fully
capitalize on its economic opportunities, the city must achieve
higher levels of job skills and
education.
—Michelle Hahn
Keith Phillips
Jessica Renier
Hahn is a student intern from
Trinity University and Phillips is a
senior economist and policy advisor at the San Antonio Branch
of the Federal Reserve Bank of
Dallas. Renier, a research assistant at the Federal Reserve Bank
of Dallas, was a student intern
3
4
5
6
7
8
The authors thank Jennifer Ford and
Caitlin Nelson for their contributions
to this article in an earlier form. The
authors would also like to thank
Elizabeth Chu Richter for her help and
guidance.
The Corpus Christi MSA consists of
Nueces and San Patricio counties.
Much of the information on Corpus
Christi’s history was taken from “The
Handbook of Texas Online” at www.
tsha.utexas.edu/handbook/
online/articles/CC/hdc3.html.
For a description of the Texas economy’s growth in the 1990s and the role
of high tech, see “Another Great Texas
Boom,” by Fiona Sigalla and Mine K.
Yücel, Federal Reserve Bank of Dallas
Southwest Economy, January/February
2001.
2004 data were used for New Orleans
and Lake Charles.
Data on top and bottom 10 industries
are available online at dallasfed.org/
research/vista/vista0701a.cfm.
Vessel shipping weight and vessel value data are from the Census
Bureau’s Foreign Trade Division.
“The Economic Significance of Tourism
and Nature Tourism in Corpus Christi,”
by Jim Lee, Corpus Christi Convention
and Visitors Bureau, May/June 2005.
“Border Benefits from Mexican Shoppers,” by Jesus Cañas, Roberto Coronado and Keith Phillips, Federal
Reserve Bank of Dallas Southwest
Economy, May/June 2006.
V
For more information, contact
Keith Phillips at (210) 978-1409 or
e-mail keith.r.phillips@dal.frb.org.
For a copy of this publication,
write to Rachel Peña, San Antonio
Branch, Federal Reserve Bank
of Dallas, 126 E. Nueva St.,
San Antonio, TX 78204.
The views expressed are those of
the authors and do not necessarily
reflect the positions of the Federal
Reserve Bank of Dallas or the
Federal Reserve System.
Editor: Keith Phillips
Copy Editor: Jennifer Afflerbach
Design: Gene Autry
Layout & Production: Ellah Piña
This publication is available on the
Internet at www.dallasfed.org.
Top and Bottom 10 Industries for Employment Growth
Share
Annualized
growth rate
(percent)
10,837
650
2,985
1,688
5,594
2,884
1,174
8,339
1,812
474
36,437
.0644
.0039
.0177
.0100
.0332
.0171
.0070
.0495
.0108
.0028
.2164
5.34
5.15
4.51
3.52
3.51
3.48
3.38
3.22
3.21
3.01
4.01
.0008
.0014
.0301
.0427
.0244
.0033
.0029
.0032
.0059
.0403
.1550
52,654
38,041
467,373
586,136
325,719
44,560
36,380
40,296
72,587
495,756
2,159,502
.0055
.0040
.0488
.0612
.0340
.0465
.0038
.0042
.0076
.0517
.2673
15.04
8.84
5.32
4.51
4.32
4.31
3.97
3.84
3.83
3.77
54.14
1,866
810
1,921
513
2,394
1,380
688
661
1,185
522
11,940
.0137
.0051
.0141
.0038
.0176
.0102
.0051
.0049
.0873
.0038
.1656
1,319
567
1,263
332
1,187
668
301
203
199
19
6,058
.0078
.0034
.0075
.0020
.0648
.0040
.0018
.0012
.0012
.0001
.0938
–2.31
–2.38
–2.80
–2.90
–4.68
–4.84
–5.51
–7.87
–11.89
–22.09
–4.52
36,976
304,736
84,257
42,562
28,037
142,140
88,676
21,460
47,842
51,937
848,623
.0053
.0436
.0121
.0061
.0040
.0204
.0127
.0031
.0069
.0074
.1216
32,747
267,636
73,600
36,109
22924
115,644
66,408
13,369
20,553
9,441
658,431
.0034
.0279
.0077
.0038
.0024
.0121
.0069
.0014
.0021
.0010
.0687
–.81
–.87
–.90
–1.10
–1.34
–1.38
–1.93
–3.16
–5.63
–11.37
–26.69
1990
Employment
Share
Top 10 Corpus Christi Industries
Ambulatory health care services
Electronics and appliance stores
Social assistance
Building material and garden supply stores
Specialty trade contractors
Support activities for mining
Health and personal care stores
Hospitals
Gasoline stations
Administration of environmental programs
Total for the top 10 industries
4,868
300
1,517
996
3,303
1,710
707
5,147
1,119
302
19,969
.0358
.0022
.0112
.0073
.0243
.0126
.0052
.0379
.0082
.0022
.1469
Top 10 Texas Industries
Management of companies and enterprises
Warehousing and storage
Ambulatory health care services
Administrative and support services
Specialty trade contractors
Electronics and appliance stores
Couriers and messengers
Financial investment and related activity
Support activities for transportation
Professional and technical services
Total for the top 10 industries
5,520
10,099
210,335
297,925
170,421
23,354
20,065
22,637
40,862
281,698
1,082,916
Bottom 10 Corpus Christi Industries
Utilities
Performing arts and spectator sports
Membership organizations and associations
Administration of human resource program
Chemical manufacturing
Oil and gas extraction
Pipeline transportation
Electronic markets and agents/brokers
Machinery manufacturing
Apparel manufacturing
Total for the bottom 10 industries
Bottom 10 Texas Industries
Miscellaneous manufacturing
Other
Chemical manufacturing
Printing and related support activities
Petroleum and coal products manufacturing
Computer and electronic product manufacturing
Oil and gas extraction
Pipeline transportation
Performing arts and spectator sports
Apparel manufacturing
Total for the bottom 10 industries
2005
Employment
NOTE: Industries shown have at least 0.25 percent of total employment in 2005 for growth industries and at least 0.25 percent in 1990 for declining industries.
Shading indicates industries Corpus Christi and Texas have in common.
SOURCES: Texas Workforce Commission; authors’ calculations.
@FedFRASER