Things are looking up for The Woodlands region economy

The Woodlands Area Chamber of Commerce just held its annual Economic Outlook Conference and the results are in: things are looking up for The Woodlands region!

2022 marked the first annual decline in jobs, dropping from 38,660 in 2021 to 36,673 last year. However, the region has bounced back with an exciting new milestone of 40,119 employees.

12 of the 13 largest sectors experienced job growth, with only manufacturing remaining flat.
Healthcare has remained the top employer in the region, with 12,390 employees accounting for 30.9% of major employees. The Education sector follows closely behind with 18.9% of total jobs, with Conroe ISD leading the way as the top employer among all the major employers with 5,025 employees. Professional & business services come in third with 12%, and transportation, warehousing, and utilities representing 8.3%. The Energy sector, once the darling of The Woodlands Region, has dropped from 27% in 2019 to 7.7% in 2023, rounding out the Top 5.

Gil Staley, CEO of The Woodlands Area Economic Development Partnership, attributes the drop in the energy sector’s rank to the better performance of the other sectors. However, two companies were responsible for a net loss of jobs among major employers - Exxon Mobile and Wildcat PPE.

Despite this setback, the number of major nonretail employers has been growing. The region went from 33 companies with 100 or more employees in 2003, to 55 in 2013, and 86 in 2023! 2022 also saw two companies grow organically from midsize employers with 40-99 employees to join the ranks of major employers with 100 or more employees.

But that's not all. Several companies have announced that they are moving their headquarters to The Woodlands, including Cellipont Bioservices, Obagi Pharmaceuticals, and SI Group. These new companies’ impact on employment is not reflected in the 40,000+ jobs, and The Economic Development Partnership has requests for proposals out with three more life sciences companies. This means that 2024 could be even better!

Class A office space is also in high demand, with a 19.2% availability rate compared to 31.5% in the Houston region. This shows that The Woodlands Region is becoming a more attractive destination for businesses looking to start up or relocate.

On top of a rise in employment, there are also some major investments happening in The Woodlands. Alexandria Real Estate Equities is developing a $200 million dollar life sciences campus off Research Forest Drive, and Brookfield Properties is planning a $100 million dollar expansion to The Woodlands Mall. These investments will bring more jobs and further stimulate the local economy.

Staley sums it up best when he says, “That is what you’re looking for in a community, a healthy employer group that’s diverse. When you have a downturn in a sector, you hope this is the case because you can absorb any downturn in a single industry.”

So there you have it, The Woodlands region is on the up and up, with a diverse range of employers, growing investment, and a promising outlook for the future.