"We see the next decade as the startup companies' decade in Austin. We will see young companies having a significant impact on the economy."
— Bill Bock, Dazel Corporation CEO

Once again, Austin's economy surpassed all expectations last year, creating 32,000 new jobs in 1999, 6,000 more jobs than in 1998.  This represents a 5.3 percent growth rate for the year, the highest of any major metro area in Texas.

Highlights
Commercial and housing construction.  A record 10,500 new homes were built and 3 million square feet of office and industrial space came on-line;  rates and occupancies across all sectors increased.

High-tech exports. 
Area companies exported $3.2 billion worth of high tech products in 1997, a 22 percent increase over 1996;  1998 will prove to be even stronger.

Venture capital funding. 
A record $200 million in venture capital was invested in local firms in 1998, a 60 percent increase over 1997.

Technology start-up activity.
Austin recorded 200 new technology startups in 1999, of which 70 percent were software ventures.

National media exposure. 
Austin received numerous accolades for its economy and high-tech vitality by national media - "Best City for Business" by Fortune, "Startup City" by Forbes, and "Hot New High-Tech City" by Newsweek.

Dell Computer.
Dell's skyrocketing success continued in 1999, with revenue increasing 40 percent to more than $25 billion and local operations adding a record 7,000 new employees.

Major new corporate announcements.
Cadence Design, Cisco, CSC Continuum, Intel, and Silicon Graphics have announced significant design and support operations in the area.  Their impact will continue to be felt over the next 5 years.

2000-2001 FORECAST
These successes suggest that Austin's economy will enjoy continued expansion in coming years and will be driven primarily by the following factors:

The continued desire and ability of Dell Computer to expand in the Austin area.  Dell currently accounts for about 15 percent of new jobs created in the area economy and, indirectly, accounts for another 20 to 30 percent - nearly one-half of all new jobs.

The advancement of the stock market, particularly for Austin public companies.  Local holdings in stocks and stock options pump tens of millions of dollars into the local retail and real estate industries, as well as new start-ups.

Strong inflows of new venture capital in the community.  Austin companies secured an estimated $740 million in venture financing in the first 3 quarters of 1999 -- more than triple the funding placed in all of 1998.

Labor availability and the continued in-migration of new talent from other parts of the U.S.  Population inflows appear to be slowing.  Employment expansion will depend largely on the recruitment of labor from outside the Austin area.

In summary, Angelou Economic Advisors forecasts the creation of 66,000 new jobs through 2001 and will maintain an annual growth rate of more than 5 percent. 

Software Development
The software development industry has been creating jobs even faster than the manufacturing sector.  Software development is the second-largest technology industry in Austin surpassing the semiconductor industry in 1999.  Currently, 750 software firms employ 27,500 people in the Austin area.  Companies currently expanding include BMC Software, CSC Continuum, Pervasive Software, Tivoli Systems (IBM), Trilogy Development, and Vignette, among many others.

Austin's software development firms are actively creating leading-edge software for a variety of industries:  Internet, entertainment and gaming, multimedia, networking, chip design, and operating systems.  These firms receive a majority of venture capital investment in Austin and represent Austin's fastest growing technology sector.

AUSTIN ENTREPRENEURSHIP: 
Venture Capital and IPO's Austin continues to demonstrate its entrepreneurial spirit through new technology ventures.  Austin recorded 200 new technology startups in 1999 and more than $740 million in venture capital.

Currently, 45 publicly-held companies are headquartered in Austin, with 80 percent having gone public this decade.  Companies that have recently gone public include Vignette, Crossroads Systems, pcOrder, Hoovers and Garden.com. Current prospects for initial public offerings include Motive, Netpliance and Deja.com.

Stock performance will increasingly become an important indicator of Austin's wealth generation and consumer spending.  In recent years, Austin stocks have shown strong returns, including the stocks of companies with large divisions in Austin.  Notable increases include Dell, National Instruments, Pervasive Software, Vignette, and IBM.