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Geographical Factors
Because of the observed low economic diversity for some rural
counties in the Coastal Bend, workers, firms and consumers in
those counties may depend on employment, shopping and other
opportunities outside those counties. Workers’ commuting patterns
provide some insight to how counties within the Coastal Bend
interact. The accompanying map shows the net commuting flows
across the 12 Coastal Bend counties. Nueces County, which has the
highest industry and occupation diversity, has the most net inflow
of commuters. Nueces County provides a substantial amount of
employment for its neighboring counties, particularly Aransas and
San Patricio within the same metro area. About one in four residents
in these two counties commute to another county for work.
DIVERSITY AND SPECIALIZATION
Community Interactions
Historically, Corpus Christi has suffered a geographical
disadvantage for not being en route to other major cities. With
the emergence of the Eagle Ford Shale as the nation’s major
oil production region, that geographical factor has become less
relevant. The Eagle Ford formation is just 70 miles north of the
metro area. Through trucks and pipelines, Eagle Ford oil and
gas are being transported to its deepwater port for processing
and shipments to other parts of the United States. The Port
of Corpus Christi has also become the gateway for exports,
particularly in oil and gas products, in addition to the historical
reliance on import traffic. The Port’s outbound shipments of
crude oil surpassed its inbound shipments for the first time by
mid-2013. The logistical advantage of the deepwater port has
also made Corpus Christi an attractive location for developing
heavy manufacturing plants and petrochemical facilities.
Commute Time
The traffic condition of the Corpus Christi metro area is one of the
region’s competitive advantages. Its average travel time to work
is less than 21.5 minutes, compared to 28.6 minutes for Houston.
According to the Texas A&M Transportation Institute, the annual
congestion cost per auto commuter in Corpus Christi is less than
$300, the second lowest among all U.S. metro areas. For businesses,
the average “value” that is lost due to traffic congestion is close to
$90 per hour. The relatively low level of congestion in Corpus Christi
translates into substantial commercial cost savings in comparison
with other metro areas like Houston, San Antonio and Austin.
Because the majority of Coastal Bend businesses are located
in Nueces County, the commute time is relatively longer for other
counties with relatively more of their residents driving out of their
home counties for work. In comparison with 19.4 minutes for Nueces
County, the average driving time to work is 20.5 minutes for Aransas
County and 22.2 minutes for San Patricio County. The driving time to
work is even higher for non-metro counties: about 24 minutes for
Bee and Jim Wells counties.
Net Commuting Flows
McMullen
117
Bee
-836
Refugio
-457
Live Oak
-656
San Patricio
-4,403
Aransas
-1,923
Cost Competitiveness
Corpus Christi boasts an affordable cost of living, with
the latest ACCRA index at 92, compared to U.S. average
of 100. Similarly, an overall relatively low cost of doing
business is often cited as a competitive advantage of
the region. According to Moody’s Analytics, the index for
Corpus Christi’s cost of doing business is 92.7, noticeably
lower than the U.S. benchmark of 100. This reading places
Corpus Christi at the bottom third among all 381 U.S.
metro areas. Along with relatively low labor and land costs,
state and local taxes contribute much to the relatively low
business costs. Local businesses, on the other hand, face
relatively high energy costs, partly due to greater electricity
consumption. The overall relatively low cost of doing
business in South Texas is advantageous for promoting
long-term economic growth.
Overall Business Cost of Corpus Christi MSA
Jim Wells
-889
Duval
712
The subtropical climate of the Coastal Bend is another
factor that affects the region’s competitive position. As
opposed to the northern region of the nation, shale oil and gas
extraction and construction activities have flourished more
in South Texas due in part to the advantage of lacking severe
winter weather that often halts production and transportation.
On the other hand, the region’s location along the Gulf of
Mexico makes it vulnerable to the risk of hurricanes, which
potentially affect its capital layout and infrastructure.
Nueces
8,277
Source: Regional Economic Applications Laboratory, University of Illinois at
Urbana-Champaign
10
Review of South Texas Business Conditions
243
96.3
286
149.5
38
–State & Local Tax
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