The economic prosperity of a city, state or nation is largely dependent on the amount, and type, of business being conducted there. Payroll, taxes and corporate purchases all contribute significantly to economic health — and, indirectly to infrastructure, civic institutions and culture. In this section we have tried to share some key indicators of our impact on the Houston Operations community as well as of the economic performance of the site.

Here are some key indicators of our impact on the local community:

Capital Expenditures

Note: Data not available 1994 – 1995.

Production

Note: Data not available 1994 – 1995.

Local Purchasing

When it comes to local purchases, we face a very difficult trade-off. As a competitive, global enterprise, we have a responsibility to actively manage our costs to a minimum. For certain products this means consolidating purchases and buying in great volume independent of the location of the supplier. However, there are other products and services that by their very nature will be bought locally, such as contract labor and certain maintenance activities. Dow's local purchasing department works closely with local suppliers to educate them about our strategic purchasing requirements.

Payroll

2006 Payroll increased over 2005 because we increased headcount, and thereby salaries and cost of benefits increased.

Note: Data not available 1994 – 1995.

Taxes

Taxes paid by a company to the various local and state authorities are an important part of our economic "footprint" in locations where our sites reside. In 2006, La Porte Operations paid $2.9 million U.S. dollars in property and sales/use taxes.