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 local community as well as of the economic performance of the site.

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

Capital Project Expenditures

In 2006, capital spending increased to its highest level in three years. Texas Operations continues to be a leader in the community by building new plants and expanding existing plant. The capital projects will boost the economy in this region. However, U.S. energy costs continue to increase, impacting the potential for future project activity.

Production

Production in 2006 decreased due to a number of factors, including higher feedstock and energy costs, and the volatile global economy.

Local Purchasing

As a competitive, global enterprise, Dow has a responsibility to actively manage our costs to a minimum. For certain products and services, 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 are purchased locally, such as contract labor and certain maintenance activities. Dow's local purchasing department works closely with local suppliers to educate them about Dow's strategic purchasing requirements.

Total Payroll

The Texas Operations payroll continues to be a major component of the economic prosperity for this region.

Taxes

Taxes paid by a company to the various taxing authorities are an important part of our economic "footprint." In 2006, Texas Operations paid approximately $83.4 million in state and local taxes. This includes property, sales/use, franchise, income, excise and other miscellaneous taxes.