Expert: Promising economic growth predicted for Tyler

Published 5:45 am Friday, January 10, 2025

Since the pandemic, employment growth has been a mixed bag across the United States, Texas, and Tyler. Nationwide, job growth came in at 4.4%, while Texas outperformed with a 10.2% increase.

Even more impressive, Tyler edged past the state with a 10.6% jump, according to statistics presented Thursday by economist Dr. Ray Perryman.

“The Tyler area is very well situated right now for economic growth,” Perryman said during the 41st Economic Outlook event hosted by the Tyler Area Chamber of Commerce at the W.T. Brookshire Conference Center.

Although growth has slowed somewhat, he’s optimistic for positive economic impact.

The Tyler area is leading the way in job growth across Texas, with industries like education, healthcare, professional services and hospitality driving the post-pandemic surge.

Educational services are projected to lead with a 2.70% growth rate through 2029, followed closely by health and social services at 2.65%. Professional and business services are expected to grow at 2.58%, with accommodation and food services slightly trailing at 2.22%.

“There’s a lot of good things that are going on here,” Perryman said. “People are coming here. Why are they coming here? Well, workforce, job opportunities and very pleasant quality of life and living environments. A lot of things make this area very, very attractive going forward, and you’ve seen a lot of growth in a lot of industries here lately.”

The Tyler Economic Development Council’s Strategic Sites Initiative, focused on preparing key locations in the area for development, will continue to bring in industry with the goal to secure land with access to utilities, transportation and a strong local workforce — creating an attractive destination for businesses looking to relocate or expand.

He believes the future will see significant growth, particularly in the energy sector, which will directly benefit this region. He pointed out that energy, in all its forms — oil, gas, renewables, hydrogen and nuclear — will continue to play a major role.

“This area is going to pick up a lot of that,” Perryman said.

Despite concerns over the future of oil and gas, recent projections from the Department of Energy show, even with advancements in renewables and other energy sources, the world will still need 21% more oil and 27% more natural gas by 2050.

“What that says is, we do have climate issues we have to deal with. We are going to be drilling for oil and gas. We’re producing oil and gas. We’re going to be doing it more responsibly than we have in the past,” Perryman said.

Artificial intelligence, data centers and crypto mining are poised to be major growth industries for Texas. Tyler is well-equipped to attract new businesses in these sectors, Perryman said.

The life sciences industry is one of the fastest-growing sectors in the country, and Texas is leading the way. With a strong health presence and a 20-year track record in life sciences, this area is well-positioned to capitalize on that momentum.

“All the [factors] that are likely to contribute growth in the future, this area is well positioned to do well in,” Perryman said. “This is a great area, a great community. You have a lot of things going for you.”

While Tyler is positioned for growth and opportunity, Perryman said the city must address the challenges that come with a growing population — namely, the need for more housing, increased investments in education and improved infrastructure.

Tyler needs to prioritize building more housing, expanding power generation and improving transmission lines where they’re most needed. Securing additional water resources, enhancing transportation options and investing in education for the next generation are critical for the city’s growth and the future of the state, Perryman added.

“All of those things are absolutely essential for the future,” Perryman said. “We have enormous opportunities. We also have some challenges and I think we’re up to meeting those challenges.”