SAN ANTONIO PROFILE

WELCOME TO THE CULTURE OF BUSINESS.While this city is known for a culture rooted in history, art and ethnic diversity, business here enjoys a culture all its own. Homegrown fi rms and expanding companies alike are drawn by aff ordable land, abundant power, a great lifestyle, a cost of living nearly 12% below the national average, and an education system that continues to evolve and improve. Their growth is actively cultivated by local business retention and expansion eff orts, and supported by fi nancial incentives and a local government focused on economic growth. The result? We’ve grown to be the 7th largest city in the U.S., with a skilled workforce of more than a million and with 160,000 students in 15 area colleges and universities. Small wonder that the Milken Institute ranks us among the top ten best performing cities in the country.

The SAEDF is available to provide you with aconfi dential, no-cost relocation analysis and assistance.

Discover a culture that can help your business grow.

WHERE IS SAN ANTONIO?San Antonio sits at the center of Bexar County, Texas – only 140 miles from the Gulf of Mexico and approximately 701 feet above sea level. Its unique geographic position connects the east and west coasts, Canada, Mexico, and Central and South America. Interstate highways connect San Antonio to the major Texas population centers and to primary border crossing points into Mexico including Laredo, Del Rio, Eagle Pass and the ports at Corpus Christi and Houston. Because of the combination of ideal location and quality infrastructure, more than 50 percent of the total goods fl owing between the U.S. and Mexico travel through San Antonio before reaching their fi nal destination.

DISTANCE TO OTHER MAJOR CITIES

Source: U.S. Census Bureau

CITY REGION MILES KM

Austin Northeast 80 128

Corpus Christi Southeast 145 233

Dallas Northeast 280 450

Houston East 200 322

Nuevo Laredo, Mexico Southwest 150 241

Monterrey, Mexico Southwest 295 474

Best Performing Cities - Milken Institute, January 2015TOP

CLIMATE (OF/OC)

ANNUAL ................................................69.5O/20.8O

JAN .................................................................. 51.8O/11O

FEB ...............................................................55.6O/13.1O

MAR ........................................................... 62.2O/16.8O

APR ...........................................................69.3O /20.7O

MAY ...............................................................76.9O /25O

JUN .............................................................. 82.4O /28O

JULY .............................................................84.6O /29O

AUG...........................................................85.3O /29.6O

SEPT ......................................................... 79.7O /26.5O

OCT ..............................................................71.2O /21.7O

NOV .................................................................61.1O /16O

DEC .............................................................52.9O /11.6O

Avg. Monthly Temp.

Source: National Weather Service 10

WHO LIVES HERE?San Antonians love both the international fl air and the down home comfort that combine to make this city so unique. San Antonio has long attracted a diverse, multifaceted and multicultural population.

POPULATION AND PROJECTIONS

RACE COMPOSITION

BEXAR COUNTY SAN ANTONIO MSA

Source: Claritas, 2014

Source: Claritas, 2014

BEXAR COUNTY SAN ANTONIO MSAPERCENTAGE PERCENTAGE

12.52% 19.65%

59.48% 54.87%

7.82% 6.95%

0.87% 0.84%

2.64% 2.31%

0.14% 0.13%

3.69% 3.49%

12.84% 11.77%

White

Hispanic/Latino

Black/African American

American Indian/Alaska Native

Asian

Native Hawaiian/Other Pacifi c Islander

Two or More Races

Other Race

LANGUAGE / BILINGUAL

BEXAR COUNTY SAN ANTONIO MSA

AREA 2010 CENSUS 2014 PROJ. GROWTH

2010 - 2018

San Antonio 1,327,605 1,416,291 6.34%

Bexar County 1,714,777 1,861,562 7.40%

Metro Area 2,142,508 2,336,330 7.64%

Source: Claritas

Hottest Cities for Millennials - Forbes, July 2014

#1

BEXAR COUNTY SAN ANTONIO MSAPERCENTAGE PERCENTAGE

36.36% 35.05%

58.00% 61.62%

3.63% 3.33%

Spanish and English

English Only

Other and English

Top 5 Fastest Growing Cities - CNN MONEY, March 2014TOP5

WHO WORKS HERE?The answer is simple: many intelligent people. In fact, over one million in San Antonio’s current skilled workforce. Median age – 34.9. Now add another 160,000 students attending 15 area colleges and universities. They represent even higher degrees of skill. The kind your fi rm can use – especially after those skills are honed to your exact specifi cations via workforce programs at some of the same colleges. Current programs include specialized training for aerospace, business, information technology, cybersecurity, and more.

ANNUAL WORKFORCE FIGURES

Source: Bureau of Labor Statistics

YEAR TOTAL CIVILIAN LABOR FORCE

PERCENT GROWTH EMPLOYMENT NO. OF WORKERS

UNEMPLOYEDUNEMPLOYMENT

RATE

2014 1,058,657 0.92% 1,018,841 39,816 3.8%

2013 1,049,019 2.22% 986,252 62,767 6.0%

2012 1,026,242 0.64% 959,876 66,366 6.5%

2011 1,019,841 3.1% 943,728 76,113 7.5%

2010 988,724 2.4% 916,219 72,505 7.3%

San Antonio MSA Annual Averages

EMPLOYMENT PERCENTAGES BY INDUSTRY

Source: Texas Workforce Commission

INTERNET TECHNOLOGY/INTERNET SECURITY IN SAN ANTONIO

• 16,848 employees

• 1,096 establishments

• Economic impact of approximately $15 billion

• #2 concentration of defense-related data centers in the US

Taking Jobs from Wall Street - Forbes, June 2014

#2

Best Cities for Job Growth

- Forbes, July 2014

#6

NAICS INDUSTRY 2014 JOBS

% OF JOBS

AVG. EARNINGS

11 Agriculture, Forestry, Fishing and Hunting 2,219 0.25% $33,327

21 Mining, Quarrying, and Oil and Gas Extraction 6,640 0.73% $93,695

22 Utilities 981 0.11% $92,011

23 Construction 42,909 4.75% $57,200

31 Manufacturing 45,054 4.98% $61,756

42 Wholesale Trade 30,464 3.37% $68,026

44 Retail Trade 103,918 11.49% $34,164

48 Transportation and Warehousing 21,096 2.33% $57,838

51 Information 21,364 2.36% $81,372

52 Finance and Insurance 59,062 6.53% $80,461

53 Real Estate and Rental and Leasing 14,821 1.64% $48,619

54 Professional, Scientifi c, and Technical Services 44,813 4.96% $74,521

55 Management of Companies and Enterprises 9,739 1.08% $131,433

56 Administrative and Support and Waste Management and Remediation Services 58,557 6.48% $35,941

61 Educational Services (Private) 15,453 1.71% $45,626

62 Health Care and Social Assistance 119,669 13.23% $48,359

71 Arts, Entertainment, and Recreation 15,182 1.68% $30,387

72 Accommodation and Food Services 105,610 11.68% $20,380

81 Other Services (except Public Administration) 26,842 2.97% $32,189

90 Government 159,571 17.65% $66,569

99 Unclassifi ed Industry 269 0.03% $37,413

KEEPING JOB GROWTH HIGH – AND COST OF LIVING LOW.San Antonio has exhibited positive employment growth and remarkable stability in recent years, even as other areas of the state and country have suffered negative job growth outcomes. Total employment in San Antonio has risen steadily from below 550,000 in early 2005 to more than 1 million in 2014. Unemployment has remained remarkably steady, never rising above 7.4 percent during this nine-year timeframe. As of December 2014, the unemployment rate for San Antonio is 3.8 percent, compared to 5.6 percent nationwide.

San Antonio boasts a lower-than-average composite cost of living among major metropolitan areas nationwide. The cost of living in San Antonio is especially low in the areas of housing, grocery items and utilities. This provides clear potential to benefit the city in the attraction of both its workforce and its student population.

MEDIAN SALES PRICE OF SINGLE-FAMILY HOMES

Source: National Association of REALTORS

Metropolitan Area 2015 (In Thousands)

San Francisco, CA .............................................................................. $742.9

San Diego, CA ....................................................................................... $493.1

Denver, CO .............................................................................................. $314.8

Austin, TX ............................................................................................... $243.8

Phoenix, AZ ...........................................................................................$200.3

Houston, TX ........................................................................................... $199.3

Chicago, IL ................................................................................................$195.1

Charlotte, NC ......................................................................................... $192.8

Dallas, TX ................................................................................................. $189.6

Jacksonville, FL ..................................................................................... $187.7

San Antonio, TX ..................................................................................$185.5

Albuquerque, NM ................................................................................. $177.2

Atlanta, GA .............................................................................................. $157.7

Kansas City, MO ...................................................................................$156.4

Oklahoma City, OK ............................................................................. $152.9

Columbus, OH ........................................................................................ $151.0

COST OF LIVING INDEX

San Francisco, CA 167.5

135.4

116.7

107.5

100.0

99.0

98.3

95.8

95.0

94.6

94.4

93.7

92.4

92.4

90.1

San Diego, CA

Chicago, IL

Denver, CO

Kansas City, MO

Houston, TX

Jacksonville, FL

Dallas, TX

Charlotte, NC

Austin, TX

Salt Lake City, UT

Albuquerque, NM

San Antonio, TX

Oklahoma City, OK Source: C2ER (ACCRA) Cost of Living Index, Annual 2014

Higher Index indicates higher cost of living, based on average index of 100 among all U.S. metro areas.

St. Louis, MO

Raleigh, NC 93.3

Columbus, OH 90.2

College/University 2014 Fall Enrollment*

Texas State University ............................................................................... 35,546

University of Texas at San Antonio .....................................................28,625

San Antonio College .................................................................................. 20,676

Northwest Vista College ............................................................................16,738

St. Philip’s College .......................................................................................... 11,723

Palo Alto College ............................................................................................9,560

University of the Incarnate Word ...........................................................8,438

Northeast Lakeview College .....................................................................5,639

Texas A&M University – San Antonio .................................................... 4,512

St. Mary’s University ......................................................................................3,868

University of Texas Health Science Center ........................................3,079

Our Lady of the Lake University .............................................................2,660

Trinity University .............................................................................................2,499

Wayland Baptist............................................................................................... 1,826

Texas Lutheran University .......................................................................... 1,400

* US Dept. of Education: IPEDS

With nearly 160,000 students at 15 different colleges and universities within a 50 mile radius of the city, San Antonio offers its college-bound residents many options. Since 2004, combined enrollment at these institutions has grown by over 52%. Continuing on its path of expansion, The University of the Incarnate Word has grown by nearly 80%; Texas State University, with over 36,000 students today, has experienced a near 28% increase; and the University of Texas at San Antonio has grown by 17%, as it makes its way to becoming a Tier One school. Meanwhile, enrollment in local community colleges has similarly skyrocketed, with Northwest Vista College nearly doubling its enrollment.

Through a community-wide effort known as SA2020, local industry and education leaders intend to orchestrate one of the greatest turnarounds in education in the United States by providing the community with access to quality education and career opportunities. With an already robust education system, the initiative positions San Antonio’s current and future workforce ahead of other major markets. And the results are already paying off. While enrollment in colleges and universities continues to climb, the Alamo City is outperforming the country in increasing the number of graduates with post-secondary degrees. According to Brookings data, San Antonio is tied at the #1 spot for most brain gain in U.S. metros with population over 1 million.

HIGHER EDUCATION IS GROWING AND THRIVING HERE.

Best Cities for Young Graduates - Forbes, March 2014

#1

HOW GREEN IS SAN ANTONIO?

We are a national leader in renewable energy and are already well on our way to achieving a goal of renewable power equal to 20% of total generation capacity (1,500 MW) by 2020. In fact, CPS Energy already:

• Has become the nation’s largest municipally-owned purchaser of wind power.

• Has 128 MW of solar power in commercial operation, with an agreement in place for the further development of 300 MW.

• Reduces power plant emissions by more than 10,000 tons per year, the equivalent of removing almost one million vehicles from our roads.

THE UTILITY SITUATION.Every large metropolitan area faces significant current demand – and growing future needs – for power, water, and telecommunication services. San Antonio is no exception. Luckily for both private and corporate citizens, however, this area is fortunate to have reliable, abundant and affordable sources for all of these. What’s more, plans are already in place to grow responsibly and dramatically in capacity as demand increases.

ELECTRIC POWER & NATURAL GAS

CPS Energy is the nation’s largest municipally-owned utility providing both electric power and natural gas. CPS Energy is the exclusive distribution supplier within its certified service territory: a 1,515-square-mile area including Bexar County and portions of Atascosa, Bandera, Comal, Guadalupe, Medina, Wilson and Kendall Counties with over 765,000 customers. CPS Energy is a forward-thinking organization and uses clean energy harvested from wind, solar and landfill gas to power San Antonio with 21st century energy options. CPS Energy is capitalizing on its aggressive clean energy initiatives and energy efficiency programs to meet its goal of achieving 20% of total generation capacity from renewable resources by 2020.

WATER

San Antonio Water System (SAWS) is the largest municipally-owned water, wastewater, chilled water, and recycled water utility in Bexar County. SAWS serves approximately 1.6 million customers. Historically, San Antonio has obtained nearly all its water from the Edwards Aquifer, which is famed for some of the cleanest water in the country. Additionally, in 2014, SAWS received unanimous support from the City of San Antonio for the Vista Ridge Pipeline, a game-changing new water supply from North Texas through a 142-mile pipeline, which will increase the city's water supply by an estimated 20%.

THE TRUTH ABOUT TAXES. Taxes are a reality everywhere you go. But some of the major factors that have led to San Antonio’s ongoing economic boom include surprisingly light tax burdens (both for businesses and for individuals), as well as special incentives available for firms locating here. How could this help your firm? The SAEDF staff is available to help guide you through the process of securing information on taxes and incentives for a variety of location scenarios.

Texas ......................................................................................................................................................... 6.250%

San Antonio........................................................................................................................................... 1.250%*

San Antonio Metropolitan Transit Authority (MTA) ..........................................................0.500%

San Antonio Advanced Transportation District (ATD) ....................................................0.250%

Bexar County .......................................................................................................................................0.000%**

San Antonio Area Total Tax Rate................................................................................................ 8.250%

SALES TAX RATES *Texas state law limits the collection of local sales and

use tax to no more than 2 percent. San Antonio, a municipality within Bexar County, has a rate of 1.250% included in the San Antonio Area Total Tax Rate.

**Bexar County does not impose a sales and use tax.

Source: Texas Comptroller

Texas

• Texas Enterprise Fund

• Skills Development Fund

San Antonio

• Economic Development Incentive Fund

• Tax Abatements and Exemptions for Targeted Industries

• Fee Waivers for Inner City Reinvestment Infill Policy

• Utility Incentives

NO STATE PERSONAL INCOME TAX

Texas does not levy individual income taxes or corporate income taxes.

FRANCHISE TAX

Texas levies an annual franchise tax on companies with liability protection. The underlying tax base is on a business' margin rather than net income or net worth resulting in a primary tax rate of 1%. Trade businesses engaged primarily in wholesale or retail activities would pay 0.5%. Businesses making less than $1 million in revenue are exempt.

INCENTIVES & COST SAVINGS

These depend in part on the type of business locating in the area and the expected number of jobs to be created. However, economic benefits and incentives are available from both state and local governments, and may include such specific programs as:

WHAT’S TRANSPORTATION LIKE IN AND AROUND THE CITY?For several centuries, San Antonio’s central location and accessible geography have made it a vital crossroads for both commerce and culture. As the city made the transition into the modern age, business transportation and shipping needs increased tremendously, and the facilities and services – from highways to rail to air – have more than kept up with demand.

AIR

San Antonio’s extensive aviation facilities include:

• San Antonio International Airport, the primary commercial aviation hub for south central Texas, which averages 260 daily domestic and international departures and arrivals, including 30 non-stop domestic and international destinations.

• Global Entry Airport.

• Stinson Airport, America’s second oldest general aviation airport.

RAIL

San Antonio’s vibrant rail system is served by:

• Multiple freight and passenger railroad companies.

• Numerous private/commercial spurs throughout the region.

• Burlington Northern Santa Fe and Union Pacifi c track access.

PORT SAN ANTONIO

Port San Antonio is a master-planned, 1,900-acre aerospace industrial complex and international logistics platform, centrally located in San Antonio. Features include:

• Foreign Trade Zone status.

• An 11,500-ft. runway.

• Unrivaled multi-rail and multi-highway access.

• Home to more than 80 public and private organizations.

ROAD

The city off ers a comprehensive, accessible and free-fl owing system of roads and transit services:

• Three major interregional highways, numerous U.S. and state highways, two major urban loops.

• Excellent transit service: current bus and paratransit, with bus rapid transit launched in 2012. VIA Metropolitan Transit operates one of the best transit systems in the country with a fl eet that consists of more than 450 buses.

• A wide array of motor freight carriers.

The New "Capital of Infl uence" in the US - Forbes, July 2014

#1

INDUSTRY HERE IS MORE DIVERSE THAN EVER.San Antonio’s growth ranks high among large Texas cities and has emerged as one of the best environments for business. The city has continued to diversify its industries over the past several decades, with healthcare, biomedical and finance prevailing. The manufacturing industry has a rich history in San Antonio, dating back nearly 300 years. San Antonio is home to many Fortune 500 companies, including Valero, USAA, Tesoro, Clear Channel and NuStar. In 2003, Toyota Motor Corp. chose San Antonio as the location of its new manufacturing plant, which generated over 2,000 jobs and produces 200,000 trucks annually.

SA2020 is a community-wide effort that promotes areas of prioritized industry growth, and works to improve San Antonio’s quality of life through areas such as transportation, education, and arts and culture. SA2020’s focus on economic competitiveness seeks to maintain steady job growth in traditional employment sectors, as well as promote growth in industries such as aerospace/aviation, bioscience/healthcare, new energy/green industries and information technology/information security. The collective nature of this effort aims to unite the community as it moves forward to 2020. For more information on these industries and others in San Antonio, visit sanantonioedf.com/industry-clusters.

AEROSPACE / AVIATION

The local aerospace industry includes a range of businesses that manufacture aircraft equipment and parts, service and repair aircraft, produce and distribute transportation equipment and supplies, provide both scheduled and unscheduled air transportation, and operate flight schools.

Industry Highlights:

• The local aerospace industry has grown 440% over 20 years, 260% over the past 15 years, and almost 75% over the past 10 years.

• Over 13,000 San Antonio employees work in the combined aerospace-related maintenance, repair, and operations (MRO), manufacturing, military, and air transportation services industry.

• Jobs in the aerospace industry are among the best paying in the area. According to a SWOT analysis by Deloitte, the average wage for aerospace employees is $59,801.

• The Alamo Area Aerospace Academy partners with industry, and is a national model for the creation of a pipeline between local high school students and aerospace employers.

BIOSCIENCE / HEALTHCARE

With San Antonio’s diverse mix of educational institutions, nationally-recognized healthcare systems, cutting-edge biotech companies and successful national corporations, the bioscience and healthcare industry is a dominant force in the city’s economy. The industry includes both direct and indirect healthcare services. Direct healthcare services include care provided in hospitals, physicians’ offices, nursing homes and various other outpatient and ambulatory care settings. Indirect industries complement and support the provision of medical and healthcare. These industry sectors include health insurance carriers, pharmaceutical companies, medical equipment manufacturers, civilian and military medical education, biomedical research organizations, residential care and social service providers, and a variety of other related endeavors. Nearly one in every six San Antonio employees works in the Healthcare and Biosciences sector.

Industry Highlights:

• In 2013, according to a Trinity University study, the economic impact of the Bioscience and Healthcare industry was $23.9 billion measured conservatively, and approximately $30.6 billion by a more comprehensive estimate.

• The industry paid $7.6 billion in wages and salaries to 164,537 employees in 2013.

• The Bioscience and Healthcare industry has added over 41,567 net new jobs over the past decade, fueling San Antonio’s growth.

US Metros with the Most "Brain Gain" - Brookings Institute, Jan. 2015

#1

NEW ENERGY ECONOMY / GREEN INDUSTRIES

San Antonio is committed to being a leader in investment and training in the green economy. San Antonio’s location is conducive to year-round solar energy and wind power, making it an ideal place to pioneer and lead the alternative energy industry. In addition to CPS Energy’s efforts to grow the renewable energy sector, San Antonio is also a national leader in green research technology, and home to long-established research entities such as the Texas Sustainable Energy Research Institute at the University of Texas at San Antonio.

INFORMATION TECHNOLOGY / INFORMATION SECURITY

San Antonio’s IT / IS sector has come to be recognized as a national leader. The state of Texas is #2 in the nation for science and technology. And according to Computerworld Magazine, San Antonio is #2 in the nation for information assurance, behind only Washington, D.C. The city’s association with the military and with scientific research has helped create a unique combination of cyber resources useful to many business operations. In 2009, the 24th Air Force activated their new Cyber Command Headquarters at Lackland AFB.

The city offers the kind of network connectivity needed to support all security levels of Global Cyber Operations, such as the Joint Worldwide Intelligence Communication System and the National Security Agency Nets, DISA GIG Network (Defense Information Systems Network) and GIG-BE (Global Information Grid Bandwidth Expansion), which helps link major government intel community sites. San Antonio also has 80-plus companies specializing in defense technology.

INFORMATION TECHNOLOGY IN SAN ANTONIO.The information technology (IT) industry itself is both large and diverse, including cybersecurity, software development, cloud services, managed hosting, and the production of a wide variety of IT related products. A small sampling of IT companies that call San Antonio home includes:

• Appddiction Studio

• Avnet

• CyrusOne

• Delta Risk

• Denim Group

• Digital Defense

• FEDITC

• GlobalSCAPE

• Innové

• KGS

• L-3 Communications Holdings

• Maxim Integrated Products

• MDI Security Systems

• Microsoft

• Mobius Partners

• NCI

• NewTek

• Rackspace

• SecureInfo

• SecureLogix

• Sigma Solutions

• Taurean Group

We invite you to learn more about San Antonio online at www.sanantonioedf.com.

Enjoy a quick and informative video introduction – 6 super-short film segments found under the “video” tab.

Or call 210.226.1394 for more information.

602 E. Commerce St. | San Antonio, TX 78205www.sanantonioedf.com | P 210.226.1394 | F 210.223.3386