December Newsletter for Accounting & Finance Professionals in Houston

Industry News and Updates

This will be my last newsletter of 2016! I recently attended a symposium sponsored by the Institute of Regional Forecasting – University of Houston, Bauer College of Business (Go Coogs!). I have shared the information I learned with you below.  While I’ve inserted some of my opinions, I can’t take any credit for this. This information was presented by Robert Gilmer, Ph.D.

  • Houston (more than likely) hit a mild recession the end of 2015 / beginning of 2016.
  • Houston is not going to enjoy a V shaped recovery. This will be a very slow recovery for us.
  • We lost about 80,000 oil related jobs (these jobs also impacted other industries as it trickles down).
  • In the past 21 months we have added 26,300 jobs. In 2016, we added 5,600 (this could be revised downwards).
  • Most of the jobs created in the past 21 months were related to the drop in natural gas prices and the petrochemical construction boom on the east side of Houston.
  • The worst SHOULD be behind us.
  • Oil has almost doubled in price since January!
  • Overall demand for oil globally is still growing (slowly), but there is still too much supply.
  • Oil needs to be at 60 dollars or above outside of the Permian Basin. The Permian Basin can make a profit at 45 dollars a barrel. This is where the rig count has grown by 150 rigs!
  • Jobs come back 2 quarters after rig count goes up.
  • There are 3 likely scenarios for 2017. Highly optimistic: Jobs come back Q1; Somewhat optimistic: Jobs come back Q2;  Not very optimistic: Jobs come back the end of 2017. In my opinion we will see a steady pick up over the year.
  • No matter what: 2018 and 2019 should be great years for Houston!

Please feel free to email me any questions about this data. I know it’s a lot to take in. I do believe that we are starting to make the turnaround. The key indicator to me is that positions with oil & gas companies are starting to be replaced when someone leaves. That also means that other companies are hiring them away. I am very optimistic about 2017 and definitely think we have put the worst behind us.

Have a great holiday! See you next year!


Local Statistics:

  • National Unemployment Rate: 4.7 (last year 4.9)
  • Houston Unemployment Rate:  5.1 (last year 4.7)
  • Labor Participation Rate: 62.8% (last year 62.50%) – All time high January 2000: 67.30% / All-time low 1977: 62.4%
  • Manufacturing Index: 51.5 (last year 48) – from what I have read 50 is the magic number! YES!!!!!
  • Oil Rig Count: 580 (last year 760)  – all time high around 1900 in 2012!
  • Price of Oil: 51.06 (last year around 50.90)
  • Industries hiring: Retail, Manufacturing, Limited Oil & Gas is coming back, Non Profit, Public Accounting Firms!!!!
  • Positions in demand: Audit & Tax Public Accounting SUPER HOT!, Staff Accountant, Internal Audit, SEC or Big 4 backgrounds are in high demand

Interesting Articles:

Current list of openings:

  • Spanish Speaking Staff Accountant – SW
  • Budget Analyst – SW
  • Senior JIB Accountant – NW Houston
  • Director of Compensation – Katy
  • Senior Financial Analyst – Galleria
  • Senior Property Accountant – Galleria
  • Senior Financial Reporting Specialist – North
  • Controller for small/midsize Company- CFO track – Humble
  • Senior Accounting Analyst – Special Projects – 3 to 4 years of public accounting – Southwest
  • Audit Manager – Public Accounting – Growing firm!!!!!
  • Rotational Audit Role – International Travel – Big 4 Background – Galleria
  • Senior Treasury Analyst – DT – Big 4 or Large Regional Firm background
  • Operational Auditor – Westchase
  • Senior Payroll Accountant – SW
  • Senior and Staff Investment Analyst – Investment banking experience
  • Senior Financial Analyst – North Houston
  • Reduced work week hours: Tax Manager or Supervisor or Senior – small public accounting firm
  • Consultant with professional services firm – Big 4 Auditors – Downtown
  • Senior Internal Auditor – Northwest
  • Financial Reporting Accountant – West & Downtown
  • Staff Internal Auditor – Galleria
  • Tax Staff Accountant – Galleria
  • Tax Senior Accountant – High Net Wealth
  • Staff Auditor – Public Accounting
  • Senior Auditor – Public Accounting
  • Senior Accountant – NW Houston
  • Senior Insurance Accountant – NW Houston
  • Staff Accountant – NW Houston
  • Property Accountant Senior
  • Audit Senior – 60% travel
  • Associate Manager / Manager – Professional Services Firm – Consulting on high profile projects – full time role – need at least 2.5 year of public accounting and maybe a splash of industry to qualify

Diane Delgado LeMaire

Senior Managing Director, Executive Search & Branch Manager

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s