As December closes out the year that was 2020, all eyes will be fixated on what Houston will look like next year, especially as it pertains to our economic outlook. Fortunately for us, some very talented minds at the Greater Houston Partnership recently released what they predict 2021 will look like. Below are some key takeaways that amount to a mixed bag of good news and bad news that might encourage people to at least keep an open mind about entrepreneurship.
Job Loss and Replacement
According to the report’s findings, the pandemic cost our city 350,000 jobs, however in the time since, Houston has gained 176,000 jobs back. As Houstonians are well aware, no industry was hit harder than oil and gas, with an estimated loss of 100,000 jobs. The oil and gas industry, already reeling from depressed commodity prices, was devastated after COVID-19 hit. Worse still—the future outlook for the oil and gas industry appears unable to reach the heights it once did.
Industries in Decline
While the hope of the vaccines has brightened the outlook for the overall economy, the report reveals several industries that have a negative growth scenario. These include oil and gas and retail. Several others have break even numbers including IT services, real estate, education, arts and entertainment and government.
A Tale of Two Halves
The report also details that Houston will have a “bi-polar” year of recovery, with the majority of gains not seen until the back half of 2021. On a quarterly basis, Q1 will be the toughest—and is expected to lag behind U.S. growth as a whole. The report predicts as many as 40,000 additional job losses. Beginning in Q2, we’ll see steady growth each quarter thereafter.
If you’re one of the tens of thousands facing an uncertain employment outlook, there’s always the option to take the entrepreneurial route. With a choice such as this, you can be in business for yourself, not by yourself. You owe it to yourself to take a moment and review the thousands of business concepts available through franchising.
Click here to connect with me. I’m Diana Trondsen, FranNet Market President, Franchise Consultant serving Houston and the Gulf Coast Region of Texas. To schedule a no-cost, no-obligation appointment, you can call, email or attend one of my upcoming webinars on franchise ownership. Together, we can find a perfect match for the business you were meant to own and operate.