Population: 195,342 Workforce: 496,793 No State Personal Income Tax

No State Corporate Population Growth Bachelor’s Degree Income Tax (99-19) 327% or Higher: 45% 5900 S Lake Forest Dr. McKinney, TX 75070 972-316-7076 CONTENTS

ECONOMICTEXAS DEVELOPMENT GUIDE 2021-22 Edition | Volume 12

BUSINESS CLIMATE 10 Cover Story: Gone to Texas Three key motivations lead companies to move their operations to Texas.

14 Economic Overview Economic expert M. Ray Perryman shares his insights into the state’s continued growth in a wide range of industries.

18 Interview: Gov. Abbott A candid interview with Gov. Greg Abbott regarding the pandemic and the state’s windfall year.

22 Interview: Adriana Cruz As a key leader in Texas’ economic development efforts, Adriana Cruz explains what makes Texas the land of opportunity and freedom.

26 Interview: Aaron Demerson Texas Workforce Commissioner Aaron Demerson discusses how the state provides workforce development services available to employers and job seekers across the state.

28 FDI & Exports FDI in Texas creates new jobs and opportunities across industries.

31 Texas By the Numbers The Lone Star State according to facts and fi gures.

34 Entrepreneurship & Innovation Innovation abounds in Austin’s Silicon Hills as multiple new tech leaders enter the fi eld.

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46 INVESTMENT PROFILE: Terrell, Texas Several family-owned companies 38 Higher Education have recently located to Terrell Texas’ six university systems offer unique advantages for for its pro-business climate and industry and employees alike. skilled workforce. 42 Workforce Resources Higher education leaders across the state are helping Texans reskill and upskill following the pandemic.

50 Corporate Headquarters A slew of tech giants have relocated their corporate headquarters from Silicon Valley and other tech clusters in favor of Texas.

INDUSTRY PROFILES 53 Renewable Energy & Electric Utilities Key signs point to Texas’ leadership in the renewable energy sector.

58 Oil & Gas Texas is the No. 1 state for petroleum — by a long shot.

60 Automotive Manufacturing Tesla’s massive Gigafactory outside of Austin is just one of many vehicle manufacturers recently driven to the Lone Star State.

63 Logistics & Distribution Amazon’s deep footprint in Texas leaves a meaningful impression about the state’s logistical advantages.

66 Advanced Manufacturing 68 INVESTMENT PROFILE: Manufacturing titans like GM, 3M, Samsung, Toyota, Ericcson, Abilene, Texas Lockheed Martin, Raytheon — and now Tesla — all call Texas home. With room to grow and access to metro markets, Abilene draws 70 Cybersecurity companies to Northwest Texas. Port San Antonio expands its campus to accommodate a wave of new cybersecurity and technology fi rms.

72 Biotechnology Thanks to the presence of Texas A&M, the Brazos Valley is quickly becoming a key cluster for biotechnology.

76 Technology Tech leaders choose Texas for locations over traditional coastal tech hubs.

78 Agribusiness & Food Processing As more employees work from home, food producers see increased demand for products.

80 Aerospace, Aviation & Defense With its legacy in aerospace and aviation, the Lone Star State is home base for space exploration.

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100 INVESTMENT PROFILE: REGION PROFILES Round Rock, Texas A diverse community in Central 82 Community Profi les Texas, Round Rock offers an ideal With unique regional advantages, Texas offers something location for corporations and for all industries and lifestyles. employees. LIFE IN TEXAS 110 Sports & Recreation From football and soccer to hockey and golf and virtually every other sport, Texans take great pride in being the best and in winning championships.

114 Quality of Life 7 reasons to move to Texas.

128 Index to Advertisers

Publisher/Director LAURA LYNE Executive Vice President RONALD J. STARNER VP of Publications & Editor in Chief MARK AREND Managing Editor of Custom Content SAVANNAH KING Managing Editor ADAM BRUNS Senior Editor GARY DAUGHTERS Art Director SCOTT LARSEN Production Manager BOB GRAVLEE Lead Designers SEAN SCANTLAND RICHARD NENOFF The publishers believe that the information contained in this publication is accurate. NEGIN MOMTAZ However, the information is not warranted, and neither Conway Data, nor Texas Economic Development Guide, assumes any liability or responsibility for actual, consequential Vice President of Sales CHARLES FITZGIBBON or incidental damages resulting from inaccurate or erroneous information. Regional Director Custom Content MARGARET ROSE Regional Director CATHY McFARLAND Circulation Manager JULIE CLARKE PHONE: (770) 446-6996 • FAX: (770) 263-8825 • TOLL FREE: (800) 554-5686 email: [email protected] web: siteselection.com/cc/texas DIGITAL TECHNOLOGY TEAM Texas Economic Development Guide is published by Conway Data, Inc. Webmaster BEN YAWN 6625 The Corners Parkway, Suite 200, Peachtree Corners, GA 30092 USA. Director of Programming & Analytics DANIEL BOYER PRINTED IN USA. ©2021 Conway IT Coordinator MARK BERTRAM

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8 TEXAS ECONOMIC DEVELOPMENT GUIDE

COVER STORY

3 reasons why so many fi rms are choosing to relocate to the Lone Star State.

Austin, TX Photo: Getty Images

by RON STARNER

one to Texas. Moving is never easy. Neither is Three simple words that the decision to move, especially when puck a lot of punch. Perhaps you’ve planted roots in a place that a gut punch to the state nurtured your growth. Whether for being left behind, but more personal reasons or corporate ones, importantly, a fistful of choosing to leave your hometown dollars for the state rolling out the to find greener pastures is often welcomeG mat. complicated and fraught with risk.

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Austin, TX Photo: Getty Images

Never in U.S. history have so many Americans elected to change addresses.

You weigh the pros and cons. You the same period in 2019. The spring evaluate your potential new home and summer months brought the against the merits of your current most relocations, but the traffic jam one. And you consider the impact of moving vans that began in March of the move on everyone else — not 2020 never truly subsided. just the people going with you, but American households, however, perhaps more importantly, the people were not the only entities engaging you’re leaving behind. in a mass exodus. As the pandemic That’s why what happened in 2020, wore on, companies followed suit. and continued happening in 2021, is What started as a trickle of relocating so remarkable. Never in U.S. history firms over the summer turned into have so many Americans elected to a tidal wave in the fall and winter change addresses. as corporate executives did the According to the National math and found it didn’t add up to Association of Realtors, 8.93 million remain in high-tax, high-cost, high- people relocated between March regulation places. and October of 2020. That marked As Site Selection Editor-in-Chief an increase of nearly 94,000 people Mark Arend chronicles in his story changing addresses, compared to about corporate headquarters the 8.84 million who moved during relocations in this publication, once a

12 TEXAS ECONOMIC DEVELOPMENT GUIDE few high-profile names made the me, “Businesses have almost total switch to Texas, others found it freedom to run their company the easy to follow. Digital Realty Trust way they see best. We can’t run moved its headquarters from San their businesses better than they Francisco to Austin. Rex Teams left can. We get out of their way and Seattle for Austin. Wesco Aircraft let them do what they do best.” relocated from Santa Clarita, Finally, Texas never quits California, to Fort Worth. And the trying to be the best state at granddaddy of them all, Oracle, attracting jobs and industry. Not said goodbye to Silicon Valley and even after a decade of dominance hello to Austin. in the prestigious Site Selection Moves like these were a big Governor’s Cup competition. That’s reason why Texas won the why Gov. Abbot and lawmakers coveted Site Selection Governor’s in Texas continue to tinker with Cup trophy for a record ninth tax and regulatory policy to make consecutive year. Texas claimed the state even more competitive. the crown by securing 781 And it’s why Texas continues to corporate facility projects in 2020, fund government-led economic nearly doubling the output of development better than any other second-place Ohio. state in the nation. Why do so many companies In other words, get ready to make this decision? It’s easy to see those three words — Gone to cite the statistical foundation for Texas — a whole lot more in 2021, these capital-intensive moves, but 2022 and beyond. in reality, the decisions go much deeper than accounting. Citing cost of living, tax rates, incentives and regulatory environments makes for a compelling case that satisfies the CFO and shareholders. But doing that alone ignores three fundamental factors: an aggressive governor; an overall philosophy of governance; and a state that refuses to concede to the competition. Gov. Greg Abbott took a lot of heat in early March when he announced his decision to fully reopen Texas, but business leaders loved him for it. The Texas Restaurant Association spoke for many when it said: “For the thousands of local restaurants on the brink of closure and the 167,000 Texans that remain unemployed in our industry alone, there’s finally a light at the end of a very long and dark tunnel.” Abbott made that bold move because of his bedrock belief in the power of freedom to unleash the best that Texans have to offer. He outlined his philosophy of governance when he recently told

TEXAS ECONOMIC DEVELOPMENT GUIDE 13 ECONOMIC OVERVIEW

The Texas Economy: Back in the Saddle

by M. RAY PERRYMAN

n spite of some major challenges over Initial unemployment claims went from the past year, the Texas economy is averaging about 13,500 per week to closer to beginning to get back on track. Recovery 300,000, topping out at more than 315,000 in from the pandemic, a severe hurricane early April. season, and the historic winter storm Businesses dealt with closures, capacity event of February 2021 is ongoing, and limits, and additional expenses for cleaning the economy’s resilience has been clearly or necessary modifications to enable safe Idemonstrated. Moreover, the state is well operations. Supply chains were disrupted, positioned for strong long-term growth. causing yet more losses. Of particular note Like all parts of the nation and, in fact, the to the Texas economy, the combination of globe, the Texas economy was hit hard by an increase in oil supply and the pandemic- the COVID-19 pandemic. From an economic related sharp decline in demand caused prices perspective, the pandemic has caused to plunge, and drilling and other activity substantial and, in many cases, catastrophic dropped along with it. losses. Millions of individuals in the state While it will take time to regain all of the have faced unemployment or reduced hours. lost ground, the recovery is well underway. Between February and April 2020, the total About 878,500 Texas jobs had been regained number of people working in Texas dropped as of February 2021 (the most recent data by nearly 1.5 million (more than 10%). available as I write this), despite a temporary

14 TEXAS ECONOMIC DEVELOPMENT GUIDE TEXAS ECONOMIC DEVELOPMENT GUIDE 15 freeze-induced setback. While employment The reasons for the problems with the is still about 600,000 below the prior peak, power grid are complex, but they can certainly there has been notable improvement. Initial be dealt with. Work is underway to pinpoint unemployment claims are now generally causes and find solutions. In some instances, under 50,000 per week, several times higher changes will be relatively simple, though than optimal but well below the spring and others will require significant investments. summer of last year. Activity in the energy The unprecedented weather identified sector is beginning to be restored and Texas weaknesses which thoughtful action can rig counts are in the 200 range, almost address, with the result being a stronger double the level last summer, and current supply going forward. prices support additional activity. During Looking ahead, the outlook for the Texas normal times, the oil and gas sector supports economy is strong. Drivers of future growth about 15% of economic activity when the include a wide range of industries, from state’s extensive network of oil field service longtime cornerstones such as oil and gas companies, pipelines, processing facilities, to emerging technology-oriented sectors. headquarters operations, and a spectrum of Texas has long led the way in attracting other firms are considered. This sector is major corporate locations and expansions Looking ahead, the outlook for the Texas economy is strong. “ Drivers of future growth include a wide range of industries, from longtime cornerstones such as oil and gas to emerging technology-oriented sectors. — Dr. M. Ray Perryman, President, CEO, The Perryman Group ”

likely to expand markedly going forward, as and will remain highly competitive for the global demand resurfaces and increases, costs foreseeable future. In fact, the state has won continue to fall, and the carbon footprint of this magazine’s “Governors Cup” for the most oil and natural gas continues to improve. significant locations and investments for the The other recent challenge the Texas past nine consecutive years, usually by a wide economy has faced is the extreme weather margin. In 2020, the state had more than in February 2021. Records were shattered 700 qualifying projects in the midst of the across the state and the cold lingered for an pandemic. Texas also obtained the “Deal of unusually long period of time. The demands the Year” with the Tesla gigafactory, as well as on the power grid were exceptional, and other high-profile announcements. Advantages when brutal conditions took down about 40% such as a lower cost structure, friendly of generation capacity (wind turbines and business environment, large workforce, strong conventional plants alike), rolling blackouts system of higher education and training, were implemented to avoid catastrophic highly praised incentive programs, and a mix damage to the grid. Most households and of industries primed for growth will keep businesses had to deal with power outages the state on many short lists for locations. (sometimes for days in freezing temperatures) Continued support for economic development and millions had no water (again for an at the State and local level will help seal extended period). the deals.

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The Perryman Group’s latest long-term region will continue to be at the forefront, but forecast indicates recovery from recent issues opportunities abound throughout Texas. and expansion in the decades ahead. Nearly As COVID-19 becomes more controlled, what 6.8 million jobs are projected to be added, for was a remarkably strong economy going into a 2045 total of 19.5 million and a 1.72% annual the health crisis is recovering. While it may rate of growth over the period. Population is take another year or two for some industries likely to grow by more than 11.0 million to and regions of the state to reach pre-pandemic reach 40.3 by 2045. Output (real gross product) levels, the long-term outlook is clearly positive. is anticipated to expand from an estimated The Texas economy is saddled up and ready 2020 level of 1.7 trillion to 4.0 trillion in 2045, to ride! a 3.43% annual rate of gain. This growth is widespread across the state, with its many Dr. M. Ray Perryman is President and Chief Executive diverse regions seeing opportunities in a variety Officer of The Perryman Group (www.perrymangroup.com), of traditional and emerging sectors. The large which has served the needs of over 2,500 clients over the past metropolitan regions and the Permian Basin oil four decades.

Looking ahead, the outlook for the Texas economy is strong. “ Drivers of future growth include a wide range of industries, from longtime cornerstones such as oil and gas to emerging technology-oriented sectors. — Dr. M. Ray Perryman, President, CEO, The Perryman Group ”

TEXAS ECONOMIC DEVELOPMENT GUIDE 17 GOVERNOR INTERVIEW

TheThe RecruiterRecruiter InIn ChiefChief by RON STARNER

Photo courtesy Governor’s Office

18 TEXAS ECONOMIC DEVELOPMENT GUIDE Texas’ ultimate deal closer resides in the Governor’s Mansion.

hen your state has won the coveted Site Selection Governor’s Cup a record nine years in a row, you may be tempted to rest on your laurels. There won’t be any of that going on in Austin this year, if Texas Gov. WGreg Abbott has his way. Far from it, Abbott is doubling down on his pursuit of corporate plant investment and private sector job creation. In a candid interview for this publication, the 48th Governor of Texas said he isn’t done persuading CEOs and other business leaders to choose Texas for their various operations. From corporate headquarters to manufacturing plants and logistics facilities, companies are investing into new and expanded projects in the Lone Star State at an unprecedented pace. In 2020, Texas outpaced every other state in the nation by landing 781 corporate facility deals, nearly doubling the total of second-place Ohio, which tallied 419. No other state in America even came close to reaching half of Texas’ total. A big reason behind Texas’ windfall last year was the Governor’s decision to reopen his state while many others were still closed for business. “We undertook a number of measures that were focused on trying to maximize businesses being allowed to remain open and operate safely and to minimize any type of shutdown,” the Governor told Site Selection Editor-in-Chief Mark Arend, “and find the right blend of that and maximum public safety. We focused on keeping businesses open as much as possible and providing them the guidance and the tools, meaning we were able to surge testing supplies through chambers of commerce to help businesses be able to test employees, for example.” The result was only a minor drop-off in corporate plant expansions from 2019 to 2020. In 2019, Texas landed 859 facility projects. In 2020, it secured 781. In his more recent interview with us, the Governor pledged to pursue a balanced

TEXAS ECONOMIC DEVELOPMENT GUIDE 19 The pace of CEOs calling me really has increased over the past year. They “are frustrated with the governance of other states and the approach that their states take with businesses on things like taxes and regulations. — Greg Abbott, Governor of Texas ” approach once again as he makes they move to Texas. daily decisions on how best to protect both public health and What is it about Texas that people business viability. On March 2, don’t learn until they’ve been there he announced that businesses in for a year or two? his state could reopen 100% on March 10 as long as certain public ABBOTT: Here is what they say to me health attainment rates were after they moved here: “We always being achieved. believed that Texas would have a Then, he went back to work, greater sense of freedom, but we had which for him meant getting busy no idea how dramatic that difference on the phones talking to CEOs from would be.” Businesses have almost around the country. Here’s what the total freedom to run their company Governor had to say about that: the way they see best. We can’t run their businesses better than they can. You talk to corporate executives We get out of their way and let them around the country all the time. do what they do best. Many of them would like to relocate their companies to Texas because Over the last year, you’ve had they are not happy where they to deal with a global pandemic, are. What typically are their two unprecedented recession, social or three biggest frustrations with upheaval and a massive winter their current location? storm. What’s the biggest lesson you’ve learned about Texas and GOV. ABBOTT: The pace of CEOs your job during that year? calling me really has increased over the past year. They are frustrated ABBOTT: It is so important to with the governance of other states show resilience and resolve and and the approach that their states perseverance. Life is always going take with businesses on things like to give you challenges to face. You taxes and regulations. We tell them just have to do your best and move that we want them, we embrace them, on. Both the House and Senate this we support them, and we will help week passed substantial legislation them achieve their vision for their to ensure that the Texas power grid companies. We then provide them will be better than ever before. Here’s with the resources and tools they an analogy that I like to share. At need to get that done, whether that’s the very beginning of Texas was the incentives or workforce training or fall of the Alamo, but Texans did not whatever they need. We embrace them give up. They fought another battle and partner with our business leaders. a couple of weeks later and won our And they know that they have a independence. In Texas, we don’t governor who is on their side and will let challenges get in our way. We work to make sure they succeed when overcome them.

20 TEXAS ECONOMIC DEVELOPMENT GUIDE Reshoring has become a hot supplies and equipment to life- topic over the past year. Which saving medicine, we understand the industries do you think are poised importance of having the immediate now to come back to America and to capability. Texas in particular? Speaking of success, Texas recently ABBOTT: One of the biggest lessons put two teams in the Final Four we learned from the pandemic was of the Men’s NCAA Basketball the mistake that had been made in Tournament: Baylor and Houston. offshoring so many critical aspects What do you have to say about that? of our nation’s health care. In Texas, we are now manufacturing PPE in ABBOTT: We have half the final four addition to other critical medical from the state of Texas. We play great supplies. A soon-to-be-announced basketball here and we are great at vaccine is going to be manufactured economic development too. That’s at Texas A&M. From medical what we say!

TEXAS ECONOMIC DEVELOPMENT GUIDE 21 EXECUTIVE DIRECTOR INTERVIEW How Texas Keeps Winning It takes a coordinated effort, says state economic development chief.

by RON STARNER

espite the global pandemic, CRUZ: Texas has always been known or perhaps because of it, as a land of opportunity and freedom. many people and companies Texas ranks No. 1 in the country in decided that 2020 was the population growth. It did in 2019 year to move to Texas. and it has for the past 19 years. The For a record ninth year in a No. 1 location they’re coming from row, Texas led the nation in corporate is California. Texas ranks second facilityD expansion activity, according in relocation activity in the nation, to Site Selection magazine — and this according to Texas Realtors. What time that included a slew of corporate brought this on? Our governor headquarters relocations. announced the process last April of Texas also led the nation in 2020 how Texas would reopen the state. I in household relocations, as folks was a member of that Strike Force. We in droves packed up their homes in asked, how can you be safe and still places like California, New York and have your doors open? That common- Illinois and high-tailed it to the Lone sense approach appealed to a lot of Star State in search of a better life for companies and CEOs. They started themselves and their families. questioning why they were located A big reason why Texas lures so where they were. A lot of prospect many employers and workers alike is activity came in because of that. They all the work that goes on behind the were not just calling our office, but scenes at the Economic Development calling the governor directly. We were & Tourism Office of Texas Governor thinking as economic developers that Greg Abbott. Leading that team is companies would put things on hold Executive Director Adriana Cruz. during an election year. We thought We recently caught up with Cruz they would take a wait-and-see attitude. for a discussion on the events of the But the pandemic started accelerating past year and her plans for continuing companies’ decisions. this unprecedented run of success in economic development for Texas. Your state won the prestigious Site Selection Governor’s Cup yet again 2020 and 2021 have been full of this year. How were you able to news stories about people and perform at such a high level in 2020 companies moving to Texas. What’s despite the global pandemic and

Photo courtesy Governor’s Office driving this mass migration? recession?

22 TEXAS ECONOMIC DEVELOPMENT GUIDE CRUZ: It is such an honor to win rate is down. Hospitalizations are down. that award and to have the projects We have learned the strategies to keep recognized nationally. To do it in a ourselves safe. pandemic year is even more amazing. We had just under $13 billion in capital How hard was Texas hit by the investment. A lot of that had to do with pandemic last year? Which the methodical and strategic way the industries absorbed the governor went about reopening the biggest blow? state. It takes a lot of people working on this together — state agency partners CRUZ: Texas was hit very hard. 1.4 and local and regional groups. Without million jobs were lost in March and them, we could not accomplish this. April. Leisure and hospitality were the sector that was hit the hardest — Gov. Abbott made the decision to accounted for 40% of the job losses. We open your state fully recently. How are seeing a bounce-back in that sector was that decision greeted by the now. Many of the businesses continued business community? to operate and were hiring. Our unemployment rate went over 13.5%. It CRUZ: He implemented measures to is now 6.8%. protect our communities to make sure Texans could earn a paycheck and How long do you think it will put food on their tables. On March 2, take before Texas returns to peak he announced that businesses could employment? reopen 100% on March 10. Even at 75%, many Texans were still sidelined and CRUZ: Economist Dr. Ray Perryman could not pay their bills. But given the says that over the next five years, we improvement in our COVID numbers, will have GDP growth of 4.5%. We Gov. Abbott recognized that it was feel very optimistic. We feel like we time to open Texas 100%. Texas is in a are on the way back and the economic far different situation today than we recovery is taking hold. Some of our were at the beginning of the pandemic. communities rank in the top 10 for job For a year, Texans have mastered the resiliency. We have had 9 consecutive safety protocols. Today (March 22), 8 months of job growth. million vaccines have been given to Texans. We are vaccinating about a The recent deep freeze and power million people a week. The positivity outages in Texas made national

TEXAS ECONOMIC DEVELOPMENT GUIDE 23 headlines. Are you having to do anything special to counteract any lingering perceptions of Texas because of that?

CRUZ: The Governor immediately stated that responding to the storm and power outage was the top priority of the Legislature. A lot of companies and site consultants understand that every region is susceptible to natural disasters. It was a once in a 500-year event. Never had all 254 counties been under a winter storm warning. Texans learn lessons and we take action. The Governor is working with the lawmakers to add more power to the grid. He recently issued an order to mandate and fund the winterization of the winter power structure.

How does Elon Musk’s decision to locate the Tesla Cybertruck plant in Texas impact your standing in the global automotive manufacturing sector?

CRUZ: It has had a huge impact in the automotive sector, technology sector, battery manufacturing, venture capital, etc. We have seen a huge exodus of executives leaving California and moving to Texas. We have seen a tremendous amount of increase in interest. The Tesla project brings 5,000 new jobs and $1.1 billion in capital investment. We are seeing other big announcements in the auto sector. Toyota announced an expansion of its truck manufacturing plant in San Antonio. There was already great interest in Texas. We are so happy to continue to build on that reputation.

What role is quality of life playing in attracting remote workers to communities in Texas?

CRUZ: In today’s world of remote working, people are choosing where to live first and then where to work. Quality of life is extremely important in those decisions. Our comparatively low cost of living, great outdoor opportunities and wide-open spaces make Texas one of the best places to Texas State Capitol building in Austin Photo: Getty Images live in the U.S. This is also an affordable

24 TEXAS ECONOMIC DEVELOPMENT GUIDE We were thinking as economic developers that companies would put things on hold “during an election year. We thought they would take a wait-and-see attitude. But the pandemic started accelerating companies’ decisions. — Adriana Cruz, Executive Director, Economic Development” & Tourism Office of Gov. Greg Abbott place to do business. As a result, we are still going to play a significant role in a population magnet. the Texas economy.

What are you hearing about the What’s been happening on the office sector in Texas? Will large CBD FDI front since the advent of office buildings in your state return the pandemic? to something close to full occupancy anytime soon? CRUZ: Texas is very successful in FDI. Site Selection magazine has ranked CRUZ: We believe we will see office us No. 1. Houston and Austin are very buildings in our CBDs fill back up. attractive. Small communities are also Commercial real estate contributed seeing their share of FDI — places like $65 billion in GDP last year. Austin and Plano and others. Companies from Brazil Dallas-Fort Worth are some of the top and Mexico are investing here. We have markets in the country for commercial not been traveling abroad, so we are real estate, along with Houston and San doing everything remotely now. That Antonio. We are home to the corporate gives us a broader reach. We are able headquarters of CBRE. HP is building to do these Invest in Texas seminars its corporate Headquarters in Spring, more often now. We are doing them Texas. There will be telecommuting for with Turkey, Peru, Panama, etc. We are the foreseeable future, but the office is getting the Texas word out there.

TEXAS ECONOMIC DEVELOPMENT GUIDE 25 TEXAS WORKFORCE COMMISSION In Lockstep with Employers by MARK AREND

n early February 2021, Governor Greg As Employers’ Representative, what Abbott reappointed Aaron Demerson to expectations or resource requests do the Texas Workforce Commission, subject employers typically bring before the to Senate confirmation, for a term set to Commission? expire February 1, 2027. The Commission is charged with overseeing and providing DEMERSON: We typically advocate for workforce development services to employers employers on the unemployment insurance andI job seekers in Texas. Aaron Demerson side of things. I’m the Commissioner that of Austin has served as the Commissioner represents the employers and two other Representing Employers since August 2019, and commissioners represent the employees. previously served as the Director of the Office And our Chair, Bryan Daniel, represents the of Employer Initiatives for the Texas Workforce public. Once a week we discuss unemployment Commission (TWC). Prior to TWC, he served as insurance cases. Texas continues to be a very a Senior Advisor to Governor Rick Perry and business-friendly state, and we’re quite proud was the Executive Director of the Economic of that. The other side of what we do is policy Development and Tourism Division. Following from the employers’ standpoint — making are highlights of a mid-March interview with sure the tax rates are favorable, that we’re Site Selection Editor in Chief Mark Arend. doing the best we can to keep rates as low as we can so that companies can operate their Congratulations on being reappointed as businesses successfully. We’re doing what we Commissioner Representing Employers at can to make sure that whatever rates are set the Texas Workforce Commission. Are there are done looking at every angle to make sure new or different priorities you anticipate we’re able to make a difference. during this new term? We also advocate on behalf of the employer in terms of their needs and desires, such as DEMERSON: None of us knew we would be liability protections, and making sure we hit by the pandemic in 2020, so we have some continue to keep our training programs in opportunities to do some things differently. place and don’t deplete our training funds for We’ve always listened to the employers, and skilling and upskilling employees. Industry now comes the time to take what we’ve learned association groups want to see Texas grow, and from this pandemic and put it into action. I represent that on the employers’ side from And we’ll do some things differently as we a policy standpoint, making sure we have the continue to grow and evolve here in Texas, proper programs in place so they can run their with companies like Tesla, Oracle and Hewlett- businesses and make a difference [see sidebar Packard announcing plans to relocate here, and for a recent example]. Early in the pandemic, we smaller ones taking place, too, statewide. We’re spoke with major industry groups about their champing at the bit to see what’s next for Texas main concerns, and one was liability protection, without the pandemic. We’ve been able to make which the governor made a priority. That’s an a lot of things work, even virtually, so I can only example of how we’re in lockstep with what the image what will happen once we’re unleashed employers are looking for. in other ways.

26 TEXAS ECONOMIC DEVELOPMENT GUIDE Managing this role over such a vast New Funding Pays for Testing, Helps Workers geography and diverse economy Improve Marketability as Texas must be a challenge. How are communications pipelines n March 8th, the Texas Workforce Commission (TWC) announced structured so you are aware of aid to Texans seeking to obtain their Texas Certificate of High employers’ workforce needs OSchool Equivalency (or TXCHSE), improve their marketability in the and concerns? workforce, and increase their earning potential. The high school equivalency subsidy program provides free subsidies for Texans at least 21 years of age to DEMERSON: On the workforce take a GED or HiSET exam. While existing adult education and literacy (AEL) side, we have 28 local workforce programs support adult learners to prepare to take a high school equivalency solutions offices throughout Texas. test, they do not cover the costs of taking a test. This program does that. Those people are the boots on the “Administrative costs should not be barriers for students who have ground for anything workforce a willingness to succeed and commit to continuing their education,” related. That makes our job a lot said TWC Chairman Bryan Daniel. “These new funds will help students cross easier. Communication in Texas is the finish line and improve their opportunities in the workforce.” made easier by the relationships Adult education and literacy (AEL) programs funded by TWC provide we have with them throughout the English language, math, reading, and writing instruction to help students state. There’s not a community in acquire the skills needed to succeed in the workforce, earn a high school Texas that feels that they aren’t tied equivalency, or enter college or career training. Recent analysis shows that a into us here in Austin, and I’m tied in significant number of unemployed Texans impacted by the pandemic do not statewide. That’s the secret in Texas have a high school diploma or its equivalent. behind some of our competitiveness “Workers in adult ed programs often joined the workforce early and — the fact that we communicate missed education opportunities,” said TWC Commissioner Representing in an effective way anywhere in Labor Julian Alvarez. “These are hard workers who have a gap in their the state. We have that issue nailed education that can be limiting. These programs help them fill that gap and down. And we were able to do that position them to reach their full potential.” before the Zoom calls.

TEXAS ECONOMIC DEVELOPMENT GUIDE 27 FDI & EXPORTS

FDI Employment Growth DOUBLES Overall Job Growth

Photo: Getty Images exas may soon be announcing one of its investors, total project-related capex and total largest foreign direct investments (FDI) project-related job creation according to the to date — a $17 billion semiconductor publication’s proprietary Conway Projects project for South Korea’s Samsung Database. Two Texas metros — Houston-The Electronics Co. The site search, which Woodlands-Sugar Land and Dallas-Fort Worth- Treportedly includes locations in Korea, New Arlington — placed fifth and sixth respectively York and Arizona, was still under way in early in the Top 10 metros for FDI projects April. Should Texas land the project, it would nationally. likely join the Austin industrial market, where Texas is home to 32 foreign trade zones, Samsung Austin Semiconductor has employed giving international companies requiring the thousands of workers for the past 25 years. benefits afforded by those plenty of location The Samsung project would add more than options. The U.K., Germany, Canada, France 500 FDI jobs to the Lone Star State’s more and Japan are the countries with those most than 666,000 — the second- FDI projects in Texas from highest number of such jobs by MARK AREND 2011 to 2016, according to the in the U.S. behind California. Governor’s Office of Economic More than 1,700 international companies Development & Tourism. The top five by job have operations in Texas, employing more creation are Japan, Canada, Germany, India than 203,800 in the manufacturing sector, or and the U.K. 31% of all FDI jobs in the state, according to the Global Business Alliance. As a percent of Japanese Investors total workers, Texas has the highest number Add Texas Facilities of FDI jobs in the South Central U.S., at 6.1%. Japan appears in both Top 5 lists, and in FDI employment growth grew 28% from 2013 November 2020 it added another project to 2018; the state’s overall private-sector to its extensive presence in Texas. CKD employment grew 13% in that timeframe, or Corporation, headquartered in Aichi, Japan, half the rate of FDI job growth. announced its first U.S. production site in In November 2020, Site Selection magazine Austin. The $13-million investment will named Texas the top state for FDI based on create up to 70 new jobs and is scheduled projects involving foreign-based end-user to begin operations in fall 2021. CKD

28 TEXAS ECONOMIC DEVELOPMENT GUIDE

Corporation provides automation technology products found in a wide range of industries including automotive, packaging, and medical. Top State for Exports —Again The Austin manufacturing facility will produce fluid-control components for the exas ended 2020 as the No. 1 exporting state in the semiconductor industry. United States for the 19th consecutive year, more Tevidence of the strength and resilience of the state’s economy, said Robert Allen, president and CEO of the Texas Economic Development Corporation. “Texas has developed More than 1,700 a remarkable track record of economic achievement,” Allen said. “Texas is and has been the No. 1 exporting state in international companies have the nation, the best state business climate, and the world’s operations in Texas, employing ninth largest economy. Even with all the challenges we faced in 2020, we are still outpacing the competition in exports — more than 203,800 in the handily, I might add — that’s a really good sign.” With $279 billion in export trade in 2020, Texas continues manufacturing sector to lead the United States as it has for the past two decades. Texas’ 2020 exports were larger than the sum total of goods In April, the Dallas office of Duke Realty exported by the next three largest export states — California Corporation announced the development of with $156 billion in exports, New York with $61.9 billion and a state-of-the-art, full-service distribution Louisiana with $59.6 billion, Allen said. Texas is also the No. facility for Yokohama Tire Corporation at 1 exporting state of technology products for the eighth con- Intermodal III Industrial Park. The deal secutive year as well, according to the U.S. Census Bureau, secures a long-term lease agreement for the with $44.8 billion in exports. California was in second place 431,630-square-foot facility in Wilmer, Texas, with $37.5 billion in exports. about 15 miles southeast of Dallas. The new The U.S. Bureau of Economic Analysis released 2020 ex- facility expands Yokohama’s distribution port data on February 5th. This data shows the pandemic had network in the U.S. to a fourth location a negative effect on exports across the nation in 2020, but centrally located to meet the needs of its a combination of factors that sustain Texas’ economy helped customers in the Southwest. Yokohama Tire it retain its top spot on the list of exporters by state. “Those is expected to begin occupying the space this factors include Texas’ pro-business climate of low taxes and summer. It will first be used to distribute reasonable regulations, its economic diversity, the second Yokohama’s OE tires, followed by passenger largest workforce in the nation, and its award-winning infra- car/light truck and commercial truck/bus structure — among many others,” Allen said. products in 2022.

A rendering of Yokohama Tire’s new distribution facility in Wilmer, Texas. Image courtesy of Duke Realty Corporation

30 TEXAS ECONOMIC DEVELOPMENT GUIDE STATISTICAL PROFILE by the Numbers TEXASTop 20 Projects of 2020

COMPANIES CITY SECTOR CATEGORY TYPE INV. US$M JOBS Axiom Space, Inc. Houston Aerospace Expansion Office, Manufacturing 2,000 1,000 Tesla Motors, Inc. Del Valle Automotive New Manufacturing 1,000 5,000 Max Midstream Texas, LLC Point Comfort Energy New Manufacturing, Dist. Warehouse 1,000 474 Qorvo, Inc. Richardson Machinery, Equip. & Const. Expansion Manufacturing 850 65 Braskem S/A La Porte Chemicals & Plastics New Manufacturing 750 50 Verizon Communications Inc. Irving Electronics Expansion Office 285 Georgia-Pacific LLC Sweetwater Paper, Printing & Packaging Expansion Manufacturing 285 120 FFF Enterprises, Inc. Flower Mound Life Sciences New Office, Distribution Warehouse 270 Freshpet, Inc. Ennis Food & Beverage New Manufacturing 264 427 Amazon.com, Inc. Waco Transport & Logistics New Distribution Warehouse 200 1,000 Horn Technologies & Services, Inc. La Porte Business & Financial Services New Manufacturing 200 38 Amazon.com, Inc. El Paso Life Sciences New Distribution Warehouse 192 700 BAE Systems PLC Austin Aerospace Expansion Manufacturing 150 700 The TJX Companies Inc. El Paso Transport & Logistics New Distribution Warehouse 150 950 Chevron Phillips Chemical Co. LLC Pasadena Energy Expansion Manufacturing 150 350 Southwest Airlines Co. Houston Transport & Logistics New Distribution Warehouse 125 400 Kinder Morgan Inc. Pasadena Energy Expansion Manufacturing 123 30 Shanghai United Imaging Healthcare Co., Ltd. Houston Life Sciences New Research and Development 112 143 Envases (UK) Limited Waco Metals New Manufacturing 100 121 Interim Healthcare Inc. Pearland Business & Financial Services New Headquarters 100 44

Top Projects by Sector Top Projects by Type

MACHINERY,20% EQUIP & CONST. 34%DISTRIB. WH 24% MFG. BUSINESS15% & FINANCIAL

TRANSPORT10% & LOGISTICS 30% OFFICE

SECTOR PROJECTS TYPE PROJECTS Machinery, Equip. & Const. 167 Distribution Warehouse 312 Business & Financial Services 128 Office 277 Transport & Logistics 86 Manufacturing 219 Food & Beverage 81 Headquarters 83 It & Comm. 74 Research & Development 12 Life Sciences 50 Call Center 8 Energy 49 Data Center 8 Chemicals & Plastics 38 Consumer Products 37 Metals 28 Automotive 22 Electronics 20 Other 52 Source: Conway Data Analytics

TEXAS ECONOMIC DEVELOPMENT GUIDE 31 Lone Star Fast Facts

Population Capital 29M Austin

Population Rank Total Area No. 2 269k sq. mi.

Governor Median Household Income Greg Abbott $61,874 (2019) Texas is No. 1 Gov. Cups won Texas is the 9x 9 years in a row No. 1 Exporter Site Selection Magazine U.S. Census Bureau, 2020, 19th consecutive year

No. 1 No. 1 State $ Fastest-Growing for Business State Economy Chief Executive, 16th consecutive year U.S. Bureau of Economic Analysis 2020

No. 1 State for No. 1 Best State to Growth Prospects Start a Business Forbes 2019 WalletHub 2019

32 TEXAS ECONOMIC DEVELOPMENT GUIDE

Texas is Home to:

3rd >1,600 Highest High School Foreign-owned Companies Completion Rate

>148 2.7 M Institutions of Small Businesses Higher Education

A Workforce of 50 Fortune 500 HQs 14 M

90+ 2nd Fortune 1000 HQs Largest Civilian Workforce in the Nation

TEXAS ECONOMIC DEVELOPMENT GUIDE 33 ENTREPRENEURSHIP & INNOVATION

THE BRIGHTEST IDEAS ARE COMING FROM

Austinaster innovator by GARY DAUGHTERS quickly raised $4.5 million Elon Musk is through seed money and a not the only WeFunder campaign. entrepreneur poised to churn “Volcon was quickly funded with an out electric vehicles in the oversubscribed seed round, confirming the Texas capital, Austin. As Musk’s enthusiasm for the category,” said Leisner. “I $1.1 billion Tesla Gigafactory takes shape in am excited to help lead the evolution of the Meastern Travis county, so many EV models powersports industry with electric vehicles are being imagined and manufactured in the that enhance the outdoor experience while Austin region that it’s now becoming known reducing our environmental footprint for as the “electric vehicle capital of the world.” future generations. Thanks to companies like That’s the term used by Andrew Leisner, Tesla, the electrification of the powersports CEO of the newly formed EV startup, Volcon. industry is no longer a question of if, but Launched in October 2021, Volcon describes when, and Volcon is positioning itself to play itself as “the first all-electric, off-road a substantial role in this rapidly changing powersports company.” Its initial lineup environment.” includes two and four-wheeled electric, off- At the same time that Volcon expands its road adventure and utility vehicles including footprint and its offerings, Austin-based Ayro The Grunt, an electric motorcycle with a 100- is scaling up to produce tens of thousands of mile range and a maximum speed of 60 miles light-duty electric vehicles that can be used per hour priced at about $6,000. to deliver food and to ferry travelers around Volcon is off to an impressive start, airports. The Ayro 311, a uniquely shaped having already announced plans to build a three-wheeler is tailored to restaurants, manufacturing plant in nearby Liberty Hill pharmacies and other business seeking cost that’s expected to produce up to 9,000 vehicles savings while pursuing sustainability goals. Downtown a year. The new factory is to feature riding Based just north of Austin in Cedar Park, Austin trails, an RV park and customer experience Hyliion makes electrified power trains Photo by Heather Overman center. Through December 2020, Volcon had for tractor-trailers that cut down on fuel

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Texas remains one of the nation’s most interesting and fastest- “growing tech markets, with Austin leading the way. —Morgan Flager, Silverton General Partner ” consumption. Bolstered by a recent merger And beneath the surface bubbles a new expected to generate more than $560 million generation of startups that is increasingly for the company, Hyliion expects to top a varied. The most recent cohort to participate billion dollars in revenue in 2023. in the University of Texas at Austin’s Student Entrepreneur Accelerator and Launch (SEAL) 360 Degrees of Innovation program includes: Austin’s surging EV industry goes to show • NwaBebè (baby bottles) how a startup scene once known chiefly for • Oxymoron Ink (non-permanent tattoo ink) enterprise software has evolved in surprising • BioBQ (lab grown meat) directions. Rated by Inc. Magazine as • Pocket Punch (self-defense) America’s top city in which to start a business • Empire Learning (real estate) in 2020, Austin is home to such diverse, • Good Apple (food delivery) nationally known startups Whole Foods, • Terra Helmets (eco-friendly Indeed, Homeaway and the vodka makers protective gear) Tito’s and Deep Eddy. Funding for such bold ideas and enterprises is a key part of any startup ecosystem, and translate ideas into commercial products and there, Austin truly shines. According to businesses. Crunchbase, Austin was the target of 61% of “Our tagline here at the University of Texas venture capital funding in Texas in 2019, a is ‘What starts here changes the world,’” says total of 1.84 billion dollars, an impressive Luis Martins, director of the university’s Herb yearly increase of 19.5%. Austin happens to Kelleher Entrepreneurship Center. “I can’t be home to Silverton Partners, ranked by think of a better way to change the world than cbinsights.com as the most active VC in Texas through innovation and entrepreneurship.” by unique investments. The Austin Technology Incubator is the deep “Texas remains one of the nation’s most tech incubator affiliated with the university, interesting and fastest-growing tech markets, focusing on breakthroughs in energy, food with Austin leading the way,” says Silverton and agriculture technology, healthcare, General Partner Morgan Flager. “We’ve always mobility, water and circular economies. felt that if Austin wins, we win, and that’s how Founded in 1989, it is also the longest active we’ve run our business. And since some of technology incubator in the United States. our most successful exits were forged during ATI’s mission is and has been to empower the 2008 financial crisis, we are excited to university and community entrepreneurs help build the next generation of companies through a customized approach to that can withstand difficult times and emerge effectively commercialize their breakthrough stronger.” innovations. Similarly, UT at Austin’s Office of Giving Life to Ideas Technology Commercialization provides In and of itself, scientific brilliance does outreach to the university’s faculty on not translate to business sense, and thus the commercialization process, promotes the best innovators are not necessarily collaboration with industry and helps best entrepreneurs. UT at Austin offers an to license and protect inventions and impressive array of programs designed to help software.

TEXAS ECONOMIC DEVELOPMENT GUIDE 37 HIGHER EDUCATION

Universities Support Diverse Needs of Industry Across the State

Photo courtesy of Texas Technical University he second-largest workforce Station. According to Money in America is over 14 million Magazine, Texas A&M University strong and is growing by ranks No. 1 in the state for value. the minute. The university’s student population Texas’s robust system of 148 ranks among national leaders and higher education institutions is the largest in Texas, according includes six public state university to U.S. News and World Report. Tsystems, six state technological In 2020, the system began college systems, and 50 community building a half-billion-dollar college districts. Across the state, complex in the Texas Medical these institutions educate 1.57 million Center area in Houston. The students annually. complex will house the university’s Even with the challenges of remote groundbreaking Engineering instruction following the pandemic, Medicine (EnMed) program and by SAVANNAH KING Texas state university systems saw create additional student housing increased enrollment. We’ve compiled and medical office space. key information regarding each of the According to Forbes, Texas A&M state’s six public university systems. University is the No.1 university With so many leading educational in the nation for having the and research locations across the most graduates serve as CEOs Lone Star State, a skilled and talented of Fortune 500 companies. The workforce is around every bend. university system also boasts an impressive lineup of nationally- • Texas A&M University System: One ranked programs for business, of the largest systems of higher engineering, health care, petroleum education in the country, the engineering, biology & agricultural Texas A&M University System is a engineering, nuclear engineering, statewide network of 11 universities, and veterinary medicine. with its flagship campus in College

38 TEXAS ECONOMIC DEVELOPMENT GUIDE • Texas State University System: than 200 degree programs. The first higher education system In 2020, TSU established established in Texas today has the Center for Innovation evolved into a network of seven and Entrepreneurship to institutions and 13 campuses foster collaboration and stretching from the Texas-Louisiana innovation across disciplines. Texas A&M LBJ Student Center. border to the Big Bend region in Photo courtesy of Texas A&M University West Texas. Member institutions • Texas Tech University System: include Lamar University, Sam One of the top public university University of North Texas eagle Houston State University, Sul systems in the nation, the Texas statue soars above students. Photo courtesy of UNT Ross State University, Texas State Tech University (TTU) System University, Lamar Institute of consists of four component Technology, Lamar State College institutions — Texas Tech Orange, and Lamar State College University, Texas Tech University Port Arthur. Lamar Institute Health Sciences Center, Angelo of Technology was recently State University and Texas Tech named No. 7 among the top 50 University Health Sciences Center community colleges by Academic El Paso — and operates in 18 cities Influence — out of nearly 1000 (16 in Texas, two international). community colleges in the U.S. TTU has seen a decade of The Texas State University System significant growth and recently (TSUS) is the third-largest system in hit a major enrollment milestone Texas, with enrollment exceeding reaching a student population of 87,000 students in the Fall 2020 more than 40,000. The university semester. The system also maintains will be welcoming its inaugural the lowest average tuition and fees class in fall 2021 to its new of any university system in Texas. School of Veterinary Medicine. Texas State University (TSU) According to Corporate in Round Rock enrolls some Recruiter College Graduate 38,000 undergraduate and Ranking Poll, a national survey graduate students in its more of corporate business recruiters

TEXAS ECONOMIC DEVELOPMENT GUIDE 39 40

Texas 27

University 30

Systems 20 20

20

10

35 45

10

10

TEXAS TECH UNIVERSITY SYSTEM 35 TEXAS STATE UNIVERSITY SYSTEM 37 TEXAS A&M UNIVERSITY SYSTEM THE UNIVERSITY OF TEXAS SYSTEM UNIVERSITY OF HOUSTON SYSTEM UNIVERSITY OF NORTH TEXAS SYSTEM INDEPENDENT UNIVERSITY

by Witman Insight Strategies, years the university’s C.T. Bauer TTU graduates are among the College of Business and Wolff most sought after in the country. Center for Entrepreneurship were Additionally, TTU has recently named the No. 1 program in the earned a designation as a Hispanic- U.S. for developing undergraduates Serving Institution (HSI) by the to become entrepreneurs by U.S. Department of Education. The Princeton Review. The University system consists • The University of Houston System: of four separate universities, Ranked among the best in the including the University of U.S., the University of Houston Houston Clear Lake, University of (UH) is home to innovative Houston Downtown, University research and a diverse student of Houston-Victoria, and the population. UH earned a top 50 University of Houston. ranking on U.S. News and World Report as a “Top Performer for • University of North Texas System: Social Mobility” and also landed on Based exclusively in the Dallas- the lists for “Top Public Schools” Fort Worth region, the University and “Best Value Schools.” of North Texas System includes UH enrolled more than 47,000 the University of North Texas, undergraduate and graduate University of North Texas Health students in fall 2021. In recent Science Center and the University

40 TEXAS ECONOMIC DEVELOPMENT GUIDE of North Texas at Dallas. A regional educational leader — with campuses in Dallas, Denton, Fort Worth, and Frisco — UNT offers more than 300 bachelor’s, master’s, and doctoral degree programs. UNT’s flagship university in Denton is a Tier 1 research university with more than 40,000 students. The UNT Health Science Center in Fort Worth is one of the nation’s premier graduate academic medical centers and is a top producer of primary care physicians in the state. It’s also a leader in DNA and Alzheimer’s Disease research.

• University of Texas System: Enrolling more than 1/3 of the students in Texas public, academic institutions, the University of Texas (UT) System has 14 academic and health institutions in multiple locations across the state, producing more than 64,000 degrees annually. UT is one of the most innovative universities in the world, collectively ranking No. 3 for most U.S. patents granted in 2019. Additionally, the UT System is No. 1 in Texas and No. 2 in the nation in federal research expenditures. According to U.S. News & World Report, several UT programs ranked among the 2021 best online college programs in the country. The ranking focused on degree programs designed to be administered online (rather than programs brought online in response to the pandemic) and highlighted programs of study at UT Arlington, UT Dallas, UT Medical Branch and UT Tyler.

TEXAS ECONOMIC DEVELOPMENT GUIDE 41 WORKFORCE RESOURCES

Texas Reskilling Grant helps Texans get back to work.

andemic-related layoffs and the Texas Workforce Commission’s closures left many people primary concerns was keeping the across the country in need state’s talent pipeline primed for of a new opportunity. The the future by helping students stay scenario was no different on track. in Texas. At the start of the In July 2020, the state announced by SAVANNAH KING pandemic, Texas’ unemployment a $175 million combined investment Prate rose to 12.8%. By February to post-secondary students and 2021, the seasonally adjusted Texas institutions to support higher unemployment rate had dropped education, including $93 million to down to 6.9%, compared to 6.8% in help students continue or restart January 2020. their progress toward earning a Rebounds like this don’t happen post-secondary credential or degree. by chance. The state took immediate Funding comes from the Governor’s action working with employers, Emergency Education Relief higher education and Texans to head Fund made available through the off the worst of the effects. One of Coronavirus Aid, Relief and Economic

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Security (CARES) Act signed into law Texas institutions to expand access to by President Trump. programs that equip students to enter “One of the best ways to accelerate the workforce with the credentials our economic recovery is to make and education tomorrow’s economy strategic investments in our future will demand.” workforce,” said Governor Greg Abbott. “These federal funds will Statewide Workforce Strategy provide targeted assistance to keep Aims to Hire students enrolled or help them re- In October 2020, Texas launched a enroll in higher education so they can new statewide workforce initiative, pursue new professional and economic Aim Hire Texas (AHT), to help opportunities for themselves and their close the gaps between employers families. By investing in our students and Texans seeking good, high- and institutions, we will make our paying jobs. workforce and our economy even The effort is a collaboration stronger.” between Texas 2036 — a data-driven The Texas Higher Education nonprofit working to ensure that It’s important to help Texans reskill and upskill so they can “get back on their feet, get back into the economy, and drive the state’s economic recovery. — Harrison Keller, Commissioner of Higher Education

Coordinating Board (THECB) awarded Texas remains the best place” to live two rounds of the Texas Reskilling and work through its bicentennial Support Fund Grant Program. In and beyond — and the Commit March 2021, through a competitive Partnership, which will co-chair process, 25 applicants representing the effort and help facilitate policy 31 institutions and serving 6,100 advocacy and the implementation of students were selected for the awards. effective education and workforce In December 2020, $18.1 million was data-driven practices. They are joined awarded to 40 applicants representing by a diverse group of founding 49 institutions and serving nearly partners including the Dallas 12,000 students. Regional Chamber, Greater Houston “Texas has tens of thousands of Partnership, Texas Association of good jobs that are being created Community Colleges, Texas Rural across the state, and at the same time Funders and United Ways of Texas. we have many displaced workers who AHT will create a statewide hub of are still unemployed. It’s important private data and analysis, leveraging to help Texans reskill and upskill so Texas 2036’s existing resources and they can get back on their feet, get analytics to maintain a near-real- back into the economy, and drive time analysis of the state’s workforce. the state’s economic recovery,” said It also will work with public- and Commissioner of Higher Education private-sector officials to share Harrison Keller. “Thanks to the and promote emerging and proven strong support of Governor Abbott strategies for workforce development, and our Texas legislative leadership, serving as a clearinghouse for the strategic investment to date of information, policy ideas and more than $27.4 million enables our leadership.

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INVESTMENT PROFILE: TERRELL, TEXAS

On to Greener Pastures Texas’ famously pro-business climate, skilled workforce attracts family-owned businesses to Terrell.

aintaining a family-owned Terrell is located just 25 miles business through the east of downtown Dallas, at the generations is no small junction of U.S. 80 and I-20. A major task. It is accomplished thoroughfare for the region, nearly through meticulous 60,000 people pass through the planning and attention to town each day. An ideal location by SAVANNAH KING detail. As the generations continue, for companies that need to move Mfamily-owned companies have to goods to market, Terrell is located adapt to the times and make strategic within a two-day drive of 93% of the moves when opportunity knocks. U.S. market. Recently, two family-owned Additionally, Terrell is home to companies have elected to do just approximately 17,975 people, with that — planting new roots in the East access to a workforce of over 412,946

Photo: Getty Images Texas town of Terrell. within 20 miles.

46 TEXAS ECONOMIC DEVELOPMENT GUIDE Paul Angelos’ grandfather originally model — reusable glass bottles — founded his family-owned shoe polish requires easy access to roads reaching company, Angelus Shoe Polish, in Los the state’s major markets. The dairy Angeles as an immigrant from Greece delivers the bottles to grocers and back in 1917. accepts returns from the stores, Citing difficulty with permitting allowing the bottles to be recycled, following a relocation due to eminent sanitized, and refilled before going domain, Angelos recently decided back on store shelves. Terrell’s to relocate his family’s business logistical advantages became a key from California following a series of consideration for the company’s site hurdles. Having decided on Texas as selection process. the comapny’s next location, Angelos found a building he liked in Terrell. However, a chemical spill on the We couldn’t be more excited property dampened the deal, and Angelos decided not to go forward about what Terrell has going with the purchase. Undeterred, the “ city approached Angelos with an idea on over there. We think it’s — “Why not build?” “We made the deal and are planning a great place with a lot of to bring everything to Terrell as soon as possible,” Angelos said. The new opportunities to grow in the facility will be a manufacturing and distribution center for the company next 20 years. and its private-label program. Angelos — Kevin Danzeisenp, 1836 Farms said he and his family are excited for ” the move. “First and foremost, we feel “We’re really excited about Texas in welcome,” Angelos explained. “We general,” Danzeisen said. “Specifically, want to be a good corporate citizen in Terrell, the way the highways are and make Terrell happy. They took a situated with I-20 and the other major leap of faith in our company.” intersections, we could get to other Likewise, for Kevin Danzeisen’s metropolises fairly easy and still be family-owned dairy business which close to Dallas, our main hub. Terrell recently selected Terrell for its new also has that small-town feeling. We site. Danzeisen said his company’s wanted to be part of a community expansion into the Texas market by that we could impact and help in that way of its new facility in Terrell is way. We couldn’t be more excited akin to his grandfather’s steps when about what Terrell has going on over starting Danizen Dairy in Phoenix, there. We think it’s a great place with Arizona, more than 60 years ago. a lot of opportunities to grow in the In early 2020, Danzeisen and his next 20 years.” company, called 1836 Farms in Texas, According to the U.S. Census expanded in order to offer organic Bureau, Kaufman County is the third Texas-made milk in glass bottles to fastest-growing county in the nation. grocers across the Lone Star State’s Terrell is the second-largest city in major markets. The company plans to Kaufman County, behind neighboring hire 20 people initially with plans to Forney. The city’s unique quality hire up to 50 in the next two years. of life, small-town feel and stellar The company’s distinctive, reusable educational institutions create an glass bottles and high-quality organic ideal location for companies and milk ­— with several quirky flavors, families to plant their roots. including banana, coffee and root “I’ve talked with some who beer — has become a highly desired have been able to leave their jobs product in grocery stores like in Dallas to work in Terrell,” Ray Kroger, Sprouts and Whole Foods in Dunlap, president of Terrell EDC. both states. “The advantages they speak of are A key component to the dairy’s invaluable. For one, they no longer

TEXAS ECONOMIC DEVELOPMENT GUIDE 47 must spend two hours of their day in ourselves in the community and make a vehicle commuting to a positive impact there.” and from the office. They While the dairy’s organic product

Dallas have time to become and old-fashioned glass bottles might more involved in the lead one to believe it is a simple community through operation. The new facility is a state- various activities and of-the-art dairy and creamery. There local events. They can was one thing, however, that required Austin drop their kids off a solution. For that help, they’ve Houston at school, pick them turned to an unconventional source — San Antonio up, and participate in the local high school. daytime school activities and Terrell High School Career & volunteer where needed. They Technical Education (CTE) students can run home at lunch if they’d like. have access to innovative, industry- They are home from work in time driven career pathway programs on a Friday night to cheer on the in high demand fields, including Terrell Tiger football team. That’s robotics, engineering, computer just to name a few. The benefits are science, automotive service, welding, tremendous and have provided a computer-aided drafting, health care, much-welcomed lifestyle change for nursing, precision manufacturing, these individuals and their families.” computer graphics, video technology and industrial safety. Students with Solutions “One thing we’re going to be doing 1836 Farm’s new roughly 34,000-sq.- in the next couple of weeks is to start ft. dairy is located at the site of the working with the local high school’s former FUJI Films building in Terrell. robotics club,” Danzeisen said. “These “It had been there vacant for almost kids are going to help us with creating 20 years,” Danzeisen said. “So, we a robotic arm that can take the bottles bought it and revamped it. We took it in crates to the conveyer. From there, all apart, got it up to 2021 standards. we can take the bottle automatically It’s kind of revitalized that whole area. through our steps. So, they’re going to That’s our goal; we want to engrain help us build this robot to break down these pallets and put these crates on a conveyor. Once they’re filled up on Terrell Gives Health Care Workforce the other end, we get the bottles into the crate. And they’re going to create A Shot in the Arm another robot on the other end that takes them off the convey and builds pened in 2019, the Health Science Academy is a strategic a pallet for us. We’re super excited partnership between the Terrell Economic Development about it, and those kids are super OCorporation, the city of Terrell, the Terrell Independent School excited about helping us.” District and Trinity Valley Community College. The program has earned high praise The academy is housed in the former Renaissance Hospital, which from other employers in the area, as had previously remained vacant for years. When the site was acquired by well. During the three-year program, Trinity Valley Community College in 2015, the city and other stakeholders students earn industry certifications transformed the site into the innovative Health Science Academy is has and college credits. They also can become today. intern with local companies, giving In October 2020, Terrell Economic Development Corporation was students valuable hands-on experience recognized by the International Economic Development Council as part of in real-world environments. Often, its 2020 Excellence in Economic Development Awards Program. Terrell these interns are hired on with the EDC was awarded silver in the Partnerships with Educational Institutions companies upon graduation. category. “It’s all hands-on. There aren’t a The facility is used by high school and college students enrolled lot of books around here,” explains in health science programs. Three career pathways lead to either a Chad Nixon, manufacturing and bachelor’s of nursing, a Licensed Vocational Nursing or an Occupational engineering instructor at Terrell Skills Certificate. High School. “This is more of a real- world environment versus the school

48 TEXAS ECONOMIC DEVELOPMENT GUIDE environment. What you see at this facility should match what you’d see in a real manufacturing facility that runs production seven days a week, year-round. We have a lot of precision measuring and parts making. They’re learning quality control and processes involved in everything from shoes to bearings.” Nixon points out that as automation becomes more prevalent in industries worldwide, programs like robotics will only become more critical. “That’s our goal in setup up all this machinery here. When one of our students goes on an interview and they take him on a tour of a plant, they’ll have a basic understanding of everything he or she is seeing there and can impress the interviewer.” Terrell High School Robotics teacher Marcus Edwards says the school’s to the shop,” said Brandom Eshom, Terrell High School Robotics program and work with industries Structural Supervision at Nucor. “The students. Photo courtesy of Terrell ISD has been a paradigm shift for the whole idea behind it is to develop that students. “There was nothing like this pipeline and increase the knowledge before,” he said. “Now, we’re having and understanding of who we are, entirely different conversations with right here in Terrell. If you get one these kids about what they want to do good person out of it that pays off in their professional careers. Basically, immediately.” our program thrives because we build Oldcastle BuildingEnvelope, a confidence in our students. They Terrell manufacturing company since realize their world can look different, 1962, was also an early supporter of so they’re asking themselves, ‘What the CTE program. Carol Ohmann, can I do? What solutions can I come group human resources manager at up with?’” Oldcastle said “It’s all to encourage Across the city, local employers two things. You can get a college agree the high school’s CTE program education after you finish high school. has earned a reputation for producing Or, if that’s not in the stars for you, quality workers. there are other opportunities right Nucor Building Systems, one of here in your backyard.” the city’s largest employers with For Casey Wiley, Madix Inc.’s over 300 employees, has found director of human resources in success with hiring students from the Terrell, educators’ willingness to work program. The company has been an with and learn from industry sets the avid supporter of the program since program apart. Madix Inc. employs its inception, providing resources approximately 900 people in Terrell and materials, as well as no-charge and is the second largest store fixture industry certifications. manufacturer in the U.S. “A lot of our processes are pretty “I think what’s been impressive is rare in our industry. The CTE and they’ve been interested in what we vocational centers out there are all want,” Wiley said. “They’re not sitting set up with our machines, our wires, there, coming up with a curriculum gloves, consumables. We’ll talk about and it maybe isn’t applicable to what safety a lot when we go out there we’re needing here.”

This article was prepared under the auspices of the Terrell Economic Development Corporation. For more information please contact Ray Dunlap, [email protected]; 469-534-2719.

TEXAS ECONOMIC DEVELOPMENT GUIDE 49 CORPORATE HEADQUARTERS It’s a Good Thing Texas Is a Big State

he last one out of Silicon of the electric car makers’ Co- Valley, please turn out the founder and CEO Elon Musk. Reports lights.” Signage to that effect of Tesla’s headquarters moving has yet to be seen in the Bay from Palo Alto to Texas were still Area, but it may be only a speculation in early April. matter of time. Corporate The Bay Area is not alone in headquarters relocations to Texas, seeing key headquarters departures The volume“ Tparticularly from Silicon for the Lone Star State. Valley, California, are on by MARK AREND Also in 2020, Peter Rex, of HQ a roll; 2021 is forecast founder and CEO of to see even more such activity Seattle-based technology, investment relocations than recent years. In 2020 alone, and real estate firm Rex Teams, tech giants Oracle and Hewlett announced his company’s relocation shows no sign Packard Enterprises announced HQ to Texas, citing social unrest and relocations from California to Austin high prices as being among the of letting up. and Houston, respectively. Dallas is factors for the decision. Rex Teams the new home base for commercial had previously been based in San real estate services CBRE Group, Francisco. which moved its headquarters As Rex noted in an October 2020 from Los Angeles. In January 2021, Fox Business interview, “Being a data center giant Digital Realty servant CEO, I want to provide my Trust, based in San Francisco, also employees with a place where they announced a headquarters move can afford to buy a home, they can to Austin. live abundantly and afford the cost Texas’ capital is also home to of schooling. Second, I want to be in Tesla Motors’ gigafactory now under a place where the American Dream Houston, Texas Photo: Getty Images construction and is the new home can flourish, which includes having

50 TEXAS ECONOMIC DEVELOPMENT GUIDE a culture that’s amenable to flourishing and a government that’s sensible. Thirdly, I want to be where the next big wave is going to be. I believe that wave, 30 years in the future, is not necessarily going to be in Seattle and San Francisco again. I think it’s going to be elsewhere.” Like Texas, Rex intimates, where housing costs, a lower-cost tax environment, well-stocked labor pool and robust business climate all beckon. Nearly 200 companies have relocated their headquarters to Texas in the past decade, noted Ed Curtis, founder and CEO of YTEXAS, in a mid-October interview on Fox Business. “I think 2021 could very well be the biggest year of corporate expansion and relocations that the state has ever seen,” he related. YTEXAS is a Texas business network for companies relocating, growing and expanding in the state, which already is home to more than 50 Fortune 500 and 95 Fortune 1000 companies.

Aerospace, Financial Services, Too In September 2020, Wesco Aircraft Hardware Corp., which now operates under the brand name IncoraTM (Wesco), announced it will relocate its headquarters from California to Fort Worth, bringing more than $6 million in capital investment and expanding its presence in the state to include up to 239 jobs. In January of this year, Wesco Aircraft merged with Pattonair Limited to form Incora, one of the world’s leading providers of comprehensive supply chain management services to the global aerospace and defense markets and other industries. A Texas Enterprise Fund (TEF) grant of $1,826,400 has been extended to Wesco Aircraft Hardware Corp. “Texas has cultivated a strong economic climate with low taxes, reasonable regulations, and a

TEXAS ECONOMIC DEVELOPMENT GUIDE 51 high-caliber workforce, which allows centrally located site also will offer companies like Wesco to innovate more accessibility and availability to and prosper,” said Governor Greg our customers and colleagues across Abbott. “As a thriving aviation and the U.S. and in Europe.” aerospace hub, Fort Worth is the Not all headquarters projects in ideal location for Wesco to continue Texas are relocations. Some Texas to grow its operations and serve its companies want to grow where customers. I am proud to welcome they are. State Bank of Texas Wesco to Texas, along with the more (SBT), $1-billion asset full-service than 200 jobs it is bringing to the commercial bank headquartered region and look forward to working in Dallas, announced in March it together to keep Texas the number has finalized plans to build a new one economy in the nation.” headquarters building in the Las “Incora is a leading, global Colinas Urban Center. Construction provider of innovative supply chain is expected to be completed mid- solutions, and the Dallas-Fort Worth 2023. The building project was area already is home to two of our announced by Chan Patel, CEO offices and our largest, by volume, and board chair of SBT. “We are distribution center in the world,” tremendously pleased to be locating Representatives for PGA of said Incora Chief Executive Officer our headquarters in the vibrant America, Cushman & Wakefield, Todd Renehan. “Our new, larger Las Colinas Urban Center,” said Adolfson & Peterson and Page gathered to celebrate the midpoint office space in Fort Worth will allow Patel. “This investment further of construction for the new PGA of us to bring our teams together strengthens our commitment to the America corporate headquarters in to increase efficiency, encourage Irving/Las Colinas community and Frisco, Texas. collaboration and support the allows our business ample room to Photo courtesy of Adolfson & Peterson Construction future growth of our business. This continue growing.”

52 TEXAS ECONOMIC DEVELOPMENT GUIDE RENEWABLES & UTILITIES

CONVERGENCE OF RESOURCES Photo: iStock

The data and the projects point to renewable power leadership in Texas. by ADAM BRUNS

.S. Wind Turbine clustered in bunches at major wind Database operated by farms that especially like to locate the U.S. Geological in the Texas panhandle. Travel to Survey, Berkeley National the land around the towns of Brady Laboratory and American and Eden and you’ll find four farms Clean Power reported with a total of 382 turbines on four 67,814 turbines in action as of farms that include the Rattlesnake UJanuary 2021, with a total rated Wind Project (64 turbines and capacity of 111,351 MW. 160 MW) and the Heart of Texas Guess where you can find 16,292 Project (64 turbines, 179.9 MW). of them? Texas, whose turbine tally The state’s wind infrastructure comes to 24% of the entire nation’s also includes its share of wind total. Whether made by Siemens, power manufacturing facilities. GE, Gamesa or others, they’re The National Renewable Energy

TEXAS ECONOMIC DEVELOPMENT GUIDE 53 Infographic data courtesy of Powering Texas

Laboratory’s Wind Prospector tool energy jobs across the nation, includes a data layer dedicated to Texas claims 26,000 (more the locations of U.S. wind turbine than 21%). and component manufacturing and supply chain facilities. A quick check • The wind industry provides an in spring 2021 found 11 facilities estimated $192 million in annual operating in the state. They include rural landowner payments as well tower manufacturing sites from as an estimated $285 million in Broadwind in Abilene and GRI state and local taxes and other Renewable Industries in Amarillo; payments. Currently installed nacelle manufacturing sites from renewable energy projects in CB Gear and Machine in Houston Texas will generate more than $4.7 and NGC Renewables in Fort Worth; billion in new tax revenue to local and assorted other operations from communities over their lifetime. Nacogdoches to Waco to Sweetwater. However, Powering Texas, an • Corporate customers have alliance of stakeholders “bound by a signed contracts for more mission to educate and advocate for projects in Texas than any other innovative, sustainable electricity state, accounting for 39% of all generation in Texas, including the contracted capacity. “The volume expansion of renewable wind energy,” of companies is also growing,” reports 41 wind power-related says Powering Texas. “Of the 29 manufacturing sites in the state. companies that announced wind The group’s members include 44 deals in 2019, 18 were first-time communities, chambers of commerce buyers of wind energy. A diverse and economic development groups group of companies are purchasing from Port Corpus Christi to Lubbock, wind energy, including Facebook, and include UT Permian Basin, as Amazon McDonald’s, Walmart, even the region known for its oil and General Motors, and more.” gas knows where the future is. As reported by Reuters in February Here Comes the Sun 2021, wind generates 20% of total “In Texas, we lead the nation in electricity in Texas, natural gas wind energy. By the end of next supplies 47.4%, coal supplies 20.3% and year, we will lead the nation in solar solar supplies 1.1%. power,” said Texas Governor Greg Among the facts assembled by Abbott in December 2020, noting the Powering Texas: state’s ability to provide companies with reliable renewable energy to help • Of the more than 120,000 wind them achieve carbon neutrality goals.

54 TEXAS ECONOMIC DEVELOPMENT GUIDE

One example can be found in represents an investment of $250 Houston, where First Solar announced million in the Texas region, with 320 in June 2020 it had signed a 15-year workers on site during construction. power purchase agreement with Dow, As part of its strategy to be a net- Inc., for its Gulf Coast operations. zero company by 2050 or sooner, by Dow’s Texas Operations is the largest 2030 bp plans to increase low carbon petrochemical site in the western investments to around $5 billion a hemisphere. year. This includes developing around Under the agreement, First Solar 50 gigawatts (GW) of net renewable will supply Dow with renewable energy generating capacity — a 20- energy from 75 percent of its 200- fold increase on the 2.5GW to date. MW Horizon Solar project in Frio “This project in Texas is a great County, Texas. example of how our joint venture with “Dow and First Solar share a bp is furthering our shared mission common vision for a more sustainable to accelerate the implementation of planet and a long history of solar,” said Kevin Smith, CEO of the partnership,” said Edward Stones, Americas, Lightsource bp. “Since bp’s Dow’s global business director for initial investment in the company in

In Texas, we lead the nation in wind energy. By the end “of next year, we will lead the nation in solar power. — Texas Governor Greg Abbott, December” 2020 Energy and Climate Change. “Multiple 2017 and our subsequent expansion raw materials, components, and into the U.S., the team has developed derivative products produced by a pipeline of 8 gigawatts of large-scale Dow contribute to the reliability and solar projects at various stages of sustainability of First Solar’s module development in 20 states across the technology, including ENGAGE PV U.S. — with more than 2 gigawatts of polyolefin elastomers. Now we are executed power contracts representing putting that technology to work in almost $2 billion in near term helping to power our operations projects.” in Texas and to reach Dow’s 2025 As with wind, solar development Sustainability Goal of obtaining 750 is helping a lot more people than megawatts of our power demand from developers and off-takers. Impact renewable sources.” Solar is on land that is leased to In January, London-based Lightsource bp from local landowners, Lightsource bp announced that providing families with a diversified its Impact Solar project located in source of reliable income for 25 or Lamar County, 120 miles northeast more years. “For many farmers, the of Dallas, had successfully completed revenue from leasing a portion of construction and entered full grid- their land for solar as a new type of connected commercial operation. crop can help them continue with Through a long-term agreement, their farming business,” Lightsource bp will sell the energy generated bp said in a release. by the 260-MW project. The project “With ranching or farming, there’s

56 TEXAS ECONOMIC DEVELOPMENT GUIDE no guarantee of income. You make your own check out of dirt,” said landowner Gerald Cooper. “With solar, you’re guaranteed a check at the end of the year. I still enjoy farming, but solar has allowed me to enjoy it more because I don’t have the dread of the market dropping or of drought, which has been our biggest challenge.” “Our dad was born on the land, which has been in our family for over 100 years,” added landowner Joy Cooper. “With solar, we’re able to keep the land in the family. The number one thing is that we will still have a connection to the land, and we’re comfortable that Lightsource bp will In addition to helping bp achieve net-zero carbon emission goals, be good stewards.” the 260-MW Impact Solar installation that went live in Lamar Stewardship in Texas means County in January 2021 is on land that is leased to Lightsource bp from local landowners, providing farming families with a diversified sustainability and economic growth source of reliable income for 25 or more years. are not mutually exclusive. Photo courtesy of Lightsource bp

TEXAS ECONOMIC DEVELOPMENT GUIDE 57 OIL & GAS UNRIVALEDUNRIVALED DOMINATIONDOMINATION

Photo by Shay La’Vee he Spindletop oilfield, the World.” discovered at the turn of the According to TIPRO, The Texas 20th century on a salt formation Independent Producers and Royalty south of Beaumont, Texas, Owners Association, Texas led the marked the birth of the modern nation in oil and gas jobs in 2020 petroleum industry. Eight years with 347,529 people employed in the of drilling on Spindletop Hill paid off industry. That’s 39% of the oil and Texas is still onT January 10, 1901. gas jobs in the entire country. The The Lucas Gusher, as the unfolding industry, says TIPRO, supported some No. 1 for phenomenon quickly became known, 2.3 million Texas jobs through direct, blew a stream of oil more than 100 indirect and induced multipliers. The petroleum, feet high until it was capped some state’s 12,000 oil and gas businesses nine days later. The Spindletop oilfield represent three times the number of and it’s not would come to produce more oil in second-place Oklahoma. a day than the rest of the world’s Not surprisingly, many leaders even close. oilfields combined. Companies that in the petrochemical industry set up shop nearby included the Texas received formal education in Texas, Company (later Texaco), Gulf Oil including at the Cockrell School of Corporation and Humble (later Exxon). Engineering at the University of Texas, to put it mildly, has never Texas at Austin. U.S. News and World looked back. More than a century Report ranks the UT Department later, the Lone Star State knows no of Petroleum Engineering graduate equal among petroleum producing program tops in the country, while by GARY DAUGHTERS states. As “The Capital of Energy the UT undergraduate program is Independence,” Texas leads the ranked No. 2. nation in petroleum refining and chemical products production and is Delivering Downstream a global leader in the closely allied Texas’ 27 refineries lead the nation petrochemical industry. Houston is in both crude oil production and known as “The Energy Capital of refining. With over 5.1 million barrels

58 TEXAS ECONOMIC DEVELOPMENT GUIDE a day, Texas has 29% of the nation’s total capacity. According to the U.S. Energy Information Administration, three of America’s four largest refineries are located in Texas. They include the Saudi Aramco refinery in Port Arthur (607,000 barrels per day), Marathon Petroleum’s Galveston Bay refinery (585,000 b/d) and the ExxonMobil Baytown refinery (560,500 b/d). In recent years, ExxonMobil has targeted Baytown for investments totaling a staggering $2 billion, including a project to build a new commercial production. The company ExxonMobil’s ethane cracker to provide feedstock says the La Porte plant is designed Baytown, Texas for two newly-added polyethylene with attention to sustainability factors refinery. Courtesy of units at the nearby Mount Belvieu such as emissions, water and energy ExxonMobil Chemical plastics plant. Such on-going efficiency and recycling and waste investments help Texas to account for reduction. one-half of the nation’s “downstream” petrochemical products such as Going With the Flow plastics, polymers and fertilizers. Texas produced 1.73 billion Even as the COVID-19 pandemic barrels of oil per day during 2020, posed unprecedented challenges a pandemic-year decline of 117 to the industry, it presented million barrels. Despite the drop in opportunities, as well. Amid increased production, oil-driven economies demand from sectors such as of west Texas continued to prosper. packaging, fast-moving consumer Midland and Odessa in the Permian goods and healthcare, Brazil-based basin, one of the oldest and most Braskem launched a $750 million widely recognized oil and gas polypropylene line in La Porte on producing regions in North America, Trinity Bay east of Houston. Braskem’s ranked in a tie for No. 6 among Site new line has a production capacity Selection magazine’s Top Performing of over 450 kilotons per year for Metropolitans (Tier-3) in 2020. Each manufacturing products such as registered major investments in oil- homopolymer, impact copolymer and related construction and equipment random copolymers. It’s the first new manufacturing. PP plant to be built in North America In August 2020, family-owned since 2008. Barron Petroleum announced the “The startup of our new production discovery of a 13,000-acre oil field line comes at a time when the North near the west Texas town of Ozona. American polypropylene industry The company says the field is needs it most,” said Alexandre Elias, estimated to hold 417 billion cubic Braskem vice president. “The market feet, or 74.2 million barrels, of oil and has adapted to the COVID pandemic gas reserves. and demand in North America has The Permian Basin’s output recovered to pre-COVID levels. potential received a major boost in The demand, coupled with recent January 2021, when Kinder Morgan’s operating challenges in the industry, long-awaited Permian Highway has created a situation where clients Pipeline entered service. The 430- in North America need our support.” mile pipeline, with a capacity of 2.1 Construction of the Baskem facility billion cubic feet per day, opened a employed some 1,300 development new corridor to the Houston metro, and construction workers, and with expanded access for Permian Braskem created an additional 50 producers to the Gulf Coast industrial full-time jobs to support long-term and export markets.

TEXAS ECONOMIC DEVELOPMENT GUIDE 59 AUTOMOTIVE MANUFACTURING

Driven to

Photo courtesy of Tesla, Inc.

by RON STARNER

veryone thought that Amazon largest electric vehicle manufacturer Tesla’s decision HQ2 was the biggest economic would locate its Gigafactory for to park aTexas billion- development project to hit producing the much-ballyhooed America until — Tesla came Cybertruck in Travis County near dollar-plant near along in 2020. Austin, Texas. How big was the impact Other wins came with it. Along with Austin revs up of the site search for the 2,000- the futuristic Cybertruck, Tesla would Eacre Gigafactory that Tesla shopped bring manufacturing operations for its an already around the country? Huge is an new electric semi-truck, the Tesla 3 understatement. and the Tesla Y. humming sector. Adriana Cruz, Executive Director The numbers alone are staggering. of the Texas Governor’s Office of The project amounts to a $1 billion Economic Development & Tourism, capital investment that will create called it a game-changer. Experts 5,000 new jobs in Central Texas just in the automotive world labeled it minutes from both Austin Bergstrom transformative. Tesla founder Elon International Airport and downtown Musk himself made it the signature Austin. Estimates place the total size project of his meteoric career. of the complex between 4 million and When the dust settled last July, 5 million sq. ft. Musk announced that the world’s How did “Project Bob Pole” land

60 TEXAS ECONOMIC DEVELOPMENT GUIDE

About 500 companies employ more than 40,000 workers in the auto sector in Texas and pay an average annual wage of more than $62,000. Source: Texas Governor’s Office of Economic Development & Tourism

in Texas? Site Selection Managing Editor Caterpillar and other vehicle producers. Since Adam Bruns interviewed dozens of people 2017, more than $2.5 billion in automotive last year and chronicled Musk’s journey plant investments have landed in the Lone from California to the Lone Star State. Star State. These include two major expansion In the end, the usual suspects prevailed: projects by Toyota at its truck plant in San presence of a skilled workforce, particularly Antonio, and a $106 million investment by in electronics; availability of a large real East Penn Manufacturing Co. in Tempe. estate tract that enabled a desirable rate of Other large deals have come from AW return on investment; generous state and Texas/Aisin, Texas Speed & Performance, local incentives package; a largely positive and Cardone Industries, Inc., and scores of forward-looking business climate; willingness suppliers. by state and local leaders to get aggressive in Altogether, more than 1,750 automotive the deal-making process; central location in manufacturing plants call Texas home, North America; superior transportation and and Texas ranks No. 7 in the U.S. in total logistics networks; and direct access to the automotive manufacturing employment. From political powers-that-be in the state capital. 2009 to 2016, total exports of cars and trucks “While automotive seems like a very from Texas more than doubled, from $9.2 distinct difference, the truth is Austin is home billion to more than $18.5 billion. to some of the most advanced electronics Texas has also experienced a 17% increase manufacturers in the world,” said Ed Latson, in automotive manufacturing output since Executive Director of the Austin Regional 2014, according to the Governor’s Office of Manufacturers Association. “The skills needed Economic Development & Tourism. to build their products are not that different Approximately 500 companies employ more than what it will take to put together an than 40,000 workers in this sector throughout electric vehicle.” Texas, paying average annual wages of more Latson added that “Tesla should be a magnet than $62,000. for an entire ecosystem of business and Texas also serves as the primary link suppliers that support automotive plants and between Mexico’s automotive plants and the their employees.” rest of the automotive manufacturing base in Tesla is far from alone. In recent years, North America. Texas has hauled in major investments from Add it all up and it is no wonder Musk chose General Motors, Toyota, Peterbilt, Toshiba, Texas. The only question is, who is next?

62 TEXAS ECONOMIC DEVELOPMENT GUIDE LOGISTICS & DISTRIBUTION AmazonSurgesin Texas

by ADAM BRUNS

There’s a lot more to Texas goods movement than one e-commerce giant. But Amazon’s very large footprint makes a deep impression.

n March 2021, Amazon over 500 new, full-time jobs decisions,” she told me. announced plans to open for the local community,” he “One is available talent — a new 1-million-sq.-ft. said, as Mayor Ginger Nelson ensuring we can have that fulfillment center in gave credit to the Amarillo initial day one talent, and Amarillo that will create Economic Development also where we can invest more than 500 new Corporation “for the hard in the long-term talent full-time jobs. work in helping make pipeline. Number two would I“We look forward to this fantastic partnership be business friendliness. We becoming part of the fabric with Amazon a reality.” want to locate and invest in of the Amarillo community Indeed, in a conversation communities that want us and are thrilled to be able I had later that month with and can support us in the to expand our operations Amazon Head of Worldwide long term, and where we can Since its inception in in the Texas panhandle,” Economic Development Holly build a long-term community 1989, more said Mark Marzano, director Sullivan, she emphasized the partnership.” than 53 million of operations at Amazon. importance of fabric over Whether it’s a fulfillment square feet “We’re grateful for the prefabricated plans. center or a corporate office have been support we’ve received from “Across the board, there in location such as Austin, developed at AllianceTexas. local and state leaders and are two things that will she said, “I can’t emphasize Photo courtesy of look forward to creating drive most of our business enough the importance AllianceTexas

TEXAS ECONOMIC DEVELOPMENT GUIDE 63 • 10 Amazon Hub Locker+ locations • 1 Amazon 4-Star store • 1 Amazon Books store • 5 Prime Now hubs • 1 Wind farm • 7 On-site solar locations • Amazon Original series filmed in Texas: “Panic”

It’s no wonder that during a Site Selection webinar Colorado River Constructors in March 2021 about the opened the top metro areas in the new U.S. nation, Texas-based Susan Highway 183 Arledge, executive managing South, formerly director of site selection and Bergstrom Expressway, incentives at esrp, referred one of Austin’s to the e-commerce facility most important surge inside and outside of arterial Texas as “the United States roadways. of Amazon.” Photo courtesy of the Central Texas But they’re not the only Regional Mobility ones accessing Texas Authority highways, ports, airports of external community employees. The only states and customers. In Lancaster partnerships with policy with more investment are in recent months, Walmart makers and economic California and Amazon’s home has located two facilities development organizations state of Washington. totaling 2.2 million sq. ft. we work with on a daily Amazon says its and 1,300 jobs; DSV Logistics basis. They also can help investments have contributed is constructing a 1-million- guide where we can best more than $18.8 billion in sq.-ft. regional headquarters integrate ourselves into the GDP to the Texas economy with 250 office jobs; and neighborhoods.” and have helped create over Kodiak Robotics is pioneering 49,000 indirect jobs on top driverless semi trucks at their Map of Fulfillment of Amazon’s direct hires — main Texas hub. From January 2018 through from jobs in construction Shane Shepard, economic March 2021, Site Selection and logistics to professional development director for magazine’s proprietary services. Moreover, more than the City of Lancaster, says database of corporate facility 116,000 independent authors the community has “a investment projects tracked and small and medium ton of creeks and rolling more than 2,440 individual businesses in Texas are selling hills for housing, schools projects across all industry to customers in Amazon’s that are rated the same as sectors and facility types in store, creating thousands our counterparts in north Texas. More than 30% of them of additional jobs across Dallas such as McKinney, — 805, to be precise — were the state. Amazon’s main Richardson, and Plano, distribution facilities. And investments in Texas include an old downtown set a whole extended family of the following: for redevelopment and them were nice big packages programming, and enough of jobs delivered by Amazon • 17 Fulfillment and space for another 54 million to its new neighborhoods. sortation centers square feet of industrial. Since 2010, Amazon has • 10 Delivery stations He also notes the area has created more than 70,000 jobs • 3 Tech hubs strong infrastructure for in Texas and invested more • 3 Air Gateways data centers. than $16.9 billion across the • 1 Regional Air Hub Good thing. The state, including infrastructure • 35 Whole Foods e-commerce wave, after all, and compensation to its Market locations depends as much on the old

64 TEXAS ECONOMIC DEVELOPMENT GUIDE information superhighway as says AllianceTexas. “A testament it does on the roads that carry to the public-private partnerships our goods. central to the AllianceTexas story, of the $768 million bid, only $25 Three Decades of million was paid by the Texas Movement and Innovation Department of Transportation Meanwhile, that Amazon (TxDOT),” the release continues. regional air hub is at “The remainder, over $743 AllianceTexas, the 27,000-acre million, came from private master-planned, mixed-use investment.” community in north Fort Worth The AllianceTexas Mobility that in March announced it had Innovation Zone (MIZ) launched generated approximately $91.98 by Hillwood and Deloitte billion in regional economic continues to expand too. And impact and over $2.82 billion in in 2020, expanding on Alliance total taxes paid to local public Airport’s legacy as the world’s entities during the past three first industrial airport, Hillwood decades. According to its annual established the AllianceTexas Insight Research Corporation Flight Test Center, which report, more than $8.24 billion recently hosted North Texas’ of the development’s economic first unmanned aircraft system impact was generated in 2020 (UAS) delivery demonstration to alone, exceeding the economic a residential community with the impact generated in 2019 by Bell Autonomous Pod Transport nearly $1 billion — remarkable (APT). “TuSimple, a global in a pandemic year, but not technology company with a when one considers e-commerce focus on self-driving, heavy-duty was the world’s pandemic- trucks, also launched expanded induced lifeline. autonomous trucking operations Since 2010, Amazon has created more than 70,000 jobs in Texas and invested more than $16.9 billion across the state.

The AllianceTexas impact from the MIZ last year with only figures to grow as a Hillwood-developed freight transportation investment does terminal,” Hillwood reports. too. Among projects currently “We’ve continued to focus underway in the AllianceTexas on sound development corridor is the construction of fundamentals, while embracing the Alliance Connector project new and innovative technologies (completion of I-35W from US that drive efficiency for our 287 to Eagle Parkway; SH 170 customers,” said Mike Berry, from Parrish Road to I-35W; president of Hillwood. “Though and Haslet Parkway extension). we all have experienced “Construction on the project significant difficulties during the kicked-off in summer 2020 and past year, AllianceTexas continues will be a three-year, simultaneous to prove its sustainability as an effort to complete stretches of economic engine for the state of three separate highway arterials, Texas and a place where business creating seamless highway can thrive during the toughest of mobility throughout the area,” circumstances.”

ADVANCED MANUFACTURING

A Higher Gear exas has long been a for its business-friendly climate, Tesla is coming manufacturing powerhouse, which includes a high-value cost having provided a platform of business and competitive to Texas, and it’s for growth and innovation incentive programs. in manufacturing sectors as Illinois-based Navistar, a hardly alone. diverse as semiconductors, leading maker of buses and aerospace, chemicals, electronics commercial trucks, chose San Tand automotive, just to name a Antonio to launch its new small handful. And you can now Manufacturing 4.0 production count Tesla among the ranks of concepts. Navistar broke by GARY DAUGHTERS manufacturing titans such as GM, ground in June 2020 on a 3M, Samsung, Toyota, Ericcson, commercial truck facility Lockheed Martin and Raytheon, that will incorporate the that call Texas home. company’s latest manufacturing The decision of Tesla’s Elon principles — digital factory, Musk to build the company’s new connected machinery, robust Cybertruck, as well as the Tesla lean manufacturing processes Model Y and Tesla Semi, on 2,000 and cloud analytics — to acres east of Austin produced “enable predictive quality and huge headlines in 2020. The $1 maintenance and allow data- billion, 4.5-million-sq. ft. plant, driven decisions to be made on is bringing some 5,000 jobs to the shop floor in real time,” the Travis County. company says. Companies like Tesla are “We are excited to launch tapping into a deep talent pool Manufacturing 4.0 concepts in Texas, where nearly 875,000 at our new facility, as these workers are employed in advancements will reduce manufacturing roles. According manufacturing complexity and to the National Association of increase quality,” said Persio Manufacturers, that gives Texas Lisboa, Navistar’s executive Tesla will build the company’s new the nation’s second-largest vice president and chief Cybertruck, Model Y and Tesla Semi models manufacturing workforce. operating officer. “Sharing these on 2,000 acres east of Austin. Image courtesy of Tesla, Inc. Manufacturers also choose Texas new industrial advances and

66 TEXAS ECONOMIC DEVELOPMENT GUIDE Axiom is partnering with Boeing and other contractors on the project that could eventually cost some $2 billion and create up to 1,000 jobs. The company expects to launch its first module as soon as 2024.

Dallas and Austin Score Big Wins Even during the recent pandemic year, Lockheed Martin found itself bolstering the workforce at facilities in the Dallas-Fort Worth area. The aerospace giant signed contracts in March alone totaling nearly $6 billion for F-35 fighter jets, missile interceptors and spare parts. Motorola expects to produce almost 400,000 cameras this year in Richardson, near Dallas, at its newly-opened Video Security & Analytics manufacturing facility. The $25 million plant also is Manufacturing 4.0 concepts to produce one million printed with our existing plants is an circuit board assemblies. additional benefit we anticipate “With this new, state-of-the-art from our experience with this facility we will be manufacturing new facility.” critical, NDAA-compliant safety Navistar’s 900,000 sq.-ft. plant and security video solutions on is bringing more than 600 jobs to the doorstep of American public the San Antonio area. The plant is safety agencies and businesses,” to make Class 6-8 vehicles, with said John Kedzierski, the production expected to begin in division’s senior vice president. early 2022. In New Braunfels, southwest of Austin, Continental is Houston’s Long Legacy investing $110 million to Houston alone is currently build a 215,000-sq.-ft. facility home to more than 250 to manufacture and produce companies involved in aircraft products for advanced driver or space vehicle manufacturing. assistance systems. The Of the 50 largest aerospace new manufacturing plant in manufacturing companies in the Comal County retained 450 country, 32 have a presence in jobs in the state of Texas and the Houston region. As the home added 130 more. of NASA’s Johnson Space Center, “We appreciate the strong Houston has been the epicenter support we have received from of human space exploration for the state, county and city of New nearly six decades. Braunfels,” said Continental North In January 2020, NASA selected America CEO Samir Salman. Houston-based Axiom Space “Having a facility specifically to build a privately funded dedicated to the development and platform that will attach to production of these technologies the International Space Station is a major step in helping us (ISS). The project could pave the achieve our vision of a world way for a future commercial with zero fatalities, injuries and space station. crashes.

TEXAS ECONOMIC DEVELOPMENT GUIDE 67 INVESTMENT PROFILE: ABILENE, TEXAS n Texas, small doesn’t necessarily mean the same thing as it does in other states. Small businesses seem to grow larger in Texas, and small towns can offer more than some major metro areas. In Abilene, that is undoubtedly true. Consider the case of Hartmann’s Inc., which Igot its start in Abilene back in 1955 as a small engine repair shop. According to the founder’s grandson and company president, Alan Hartmann, it is still a “small company” with just 55 employees at its headquarters and manufacturing facility in Abilene and another seven at its Jacksonville, Florida, location. Today, the family-owned company produces precision parts for some of the biggest names in the aerospace, automotive and medical industries — like Johnson & Johnson, Cummins Engines and Emerson Automation. Hartmann’s also serves a few other local customers in the DFW area, including Boeing, Pratt & Whitney, Lockheed Martin, Raytheon, and Aerojet Rocketdyne. Hartmann said that operating the company for nearly 70 years in Abilene has provided Small Town, several benefits. First, Abilene’s people are skilled and hardworking, which has given the company a solid team to rely on over the years. Big Opportunity Second, I-20 provides easy access to technical With ample space and easy access resources in major cities like El Paso and the Dallas-Fort Worth metro area. Finally, “the to markets, Abilene draws city has been absolutely fantastic in our latest companies to Northwest Texas. growth push that we’ve had,” Hartmann said. Abilene’s central location offers ease of access to markets on both coasts, the Midwest, by SAVANNAH KING northeast and Mexico. With Interstate 20, U.S. highways 83, 84 and 277, as well as rail services by Union Pacific and Southern Switching Company, getting goods to market from Abilene is easy. In 2020, more than 122,500 people called Abilene home. Additionally, the region boasts a 19-county labor shed representing more than 140,000 people. The city is home to several higher education institutions, including three private universities, two public community and technical colleges and the Texas Tech Health Science Center — Schools of Nursing, Public Health & Pharmacy. Dyess Air Force Base in Abilene supports more than 5,000 civilian and military personnel and TOP: Abilene’s SoDA District. ABOVE: Hartmann’s Inc. Photos courtesy of Development Corporation of Abilene 8,000 family members and retirees.

68 TEXAS ECONOMIC DEVELOPMENT GUIDE Room to Grow things about them,” Amarillo The city’s two business parks and available Hartmann said. “They properties mean companies have plenty of room to are unbelievably Lubbock Fort grow when they need to. Abilene’s next-generation professional, and Worth industrial park, Access Business Park, offers several they’re Dallas shovel-ready sites ranging from 2 to 15 acres. here for ABILENE While the city’s 1000-acre business park, Five the best Points Business Park, provides ample room for all- interest of sized companies. Five Points Business Park offers not only the Austin companies easy access to Interstate 20, with service company that’s Houston by Union Pacific Railroad, and is fully equipped with moving in but San Antonio electrical, natural gas, water and wastewater and also the city.” fiber optics for telecommunications. Additionally, the park is only a 15-minute drive from the Abilene Business Friendly Reputation Regional Airport, which offers six round-trip daily Abilene and the DCOA team’s commercial flights to Dallas-Forth Worth and two reputation has been known to attract round-trip daily commercial flights to Houston. companies to the area in the past. In 2019, Hartmann’s Inc. had reached a critical For instance, when Prairie Dog Pet Products junction. With several new contracts secured, found itself ready to scale up, the company turned to Hartmann said the company found itself at the the DCOA. precipice. Founded in Dallas a decade ago, “We had to either grow Prairie Dog Pet Products began by or cut back,” Hartmann The people of offering elk and deer antlers as said. “For the sake of the Abilene are the natural pet treats. Demand for the company and everyone “ product took off and hasn’t slowed that works here, we said, kind of folks down yet. Today the company is ‘We’re pushing forward, growing and is in the process of and we’re going to be on you would want becoming a new pet food brand the cutting edge of what called Primal Pets. we do.’ And that’s exactly to partner with Scott Gordon, CFO of Primal where we are.” Pets, said it was Abilene’s proximity In early 2020, when you’re to Dallas, large labor pool and Hartmann’s Inc. invested the DCOA’s helpfulness that led $12.5 million into its new going forward. the company to choose Abilene 100,000-sq.-ft. facility in for the site of its 100,000-sq.-ft. — Scott Gordon, CFO, Primal Pets the Five Points Business manufacturing facility in 2015. Park with help from the Development Corporation Primal Pets” is currently planning to expand its of Abilene (DCOA). Hartmann explained that operation by 60,000-sq.-ft. in the next two years. the DCOA’s hands-on approach to working with Gordon said the company also plans to triple its businesses has benefited the company in the workforce at the same time. last year. “From a location standpoint, let’s face it, Five “I’m very thankful for the vision and the Points Parkway is right on the interstate,” Gordon persistence of the DCOA,” Hartmann said. “We were said. “It is a benefit. Getting in and out is easy. looking at a smaller building in Five Points. (They) There’s a lot of space at Five Points — the DCOA has said to me, ‘Alan, I think you’re too close to the a lot of dry powder. It’s not like you’re going to be growth. You can’t see what you’re going to need in competing with folks — at least in the beginning — the future. You’re too close to it.’ By the good grace for limited space. It’s Texas and there’s a lot of space of the Lord and a little persuasion, we wound up around us. Not to mention the people, the people here in this magnificent facility.” of Abilene are the kind of folks you would want to Hartmann says the larger facility has given the partner with when you’re going forward.” company room to become leaner and more efficient. They say everything is bigger in Texas, and “Abilene is a fantastic city. Misty Mayo and her Abilene’s small-town community spirit has enormous entire team at the DCOA, I cannot say enough good appeal for companies of all sizes.

This Investment Profile was prepared under the auspices of the Development Corporation of Abilene. For more information, please contact [email protected]; 325.676.6390.

TEXAS ECONOMIC DEVELOPMENT GUIDE 69 CYBERSECURITY

as many global companies operate cyber operations in the city as well, including Northrop Grumman, Deloitte, Raytheon, Safety in Verizon and many others. Port San Antonio, built on the site of the former Kelly Air Force Base, is home to more than 14,000 jobs. Nearly 4,000 of those jobs have been added by the port’s San Antonio: tenant customers since its Tech Port vision was launched in 2018. The Tech Port vision Port San Antonio expands for aims to leverage the port’s unique industrial platform and deliver innovation technology next wave of cybersecurity, solutions to large industries including aerospace, energy, defense, cybersecurity, tech growth. manufacturing, logistics, financial services and medicine. by SAVANNAH KING Directly across the street from Joint Base San Antonio Lackland, Port San Antonio has an Antonio is one of the nation’s recently made several key investments to its largest hubs for the cybersecurity 1,900-acre campus. In 2018, the port completed industry. Behind Washington D.C., the first facility at Project Tech, a 90,000-sq. San Antonio is home to the most ft. facility built for secure research and testing cybersecurity professionals in the U.S. laboratories for cybersecurity. In September Bolstered by one of the nation’s 2019, the port expanded again with a 174,000 largest military populations, including sq. ft. Project Tech Building 2. Like building Sthe Sixteenth Air Force (Air Forces Cyber) 1, building 2 included features important headquarters at Joint Base San Antonio to cybersecurity operations including fully Lackland, and the National Security Agency redundant power and telecommunications (NSA) Central Security Service Crypotologic connectivity. Center and the FBI Cyber Division, San Will Garrett, Vice President of Cybersecurity Antonio’s network of military and private development at Port San Antonio, said the sector businesses has created a unique Project Tech Building 2 was leased in less atmosphere of innovation and defense time than the first building, a clear sign of the technology. opportunity that exists in the space. Innovation Today, the city is home to over 100 Center Arena cybersecurity companies, and nearly 40 Building for Talent and Innovation Image courtesy of Port San Antonio cybersecurity company headquarters. Nearly In August 2020, the port began constructing

70 TEXAS ECONOMIC DEVELOPMENT GUIDE a full-spectrum innovation center that will Deon Viergutz. “This will be an innovative significantly advance the port’s mission to environment that we envision over the coming accelerate the pace of American ingenuity. The years will be a place where Lockheed Martin new building will span 130,000 square feet and our customers are able to come together to representing an investment of approximately collaborate in a single place where the mission is $60 million. Construction is expected to begin in executed.” early 2022. Lockheed Martin’s Port San Antonio site houses “From a site selector standpoint, companies two of its cybersecurity divisions: Spectrum say what they’re looking for 1, 2 and 3 is talent, Convergence and Cyber Solutions. The company talent talent,” Garrett says. “That’s the impetus strategically designed its space to accommodate and motivation for our new innovation center.” clients across both realms in conducting The upcoming space will be a leading cyberwarfare exercises to test potential scenarios destination that engages for offensive and defensive hundreds of thousands cybersecurity training. of people annually from Everybody that Among the tools under throughout the region, development at Lockheed across the country and has a computer Martin’s new site will be around the world. They “on their desk has HenosisTM, the company’s will include competitors prototype for the U.S. Air and spectators of to worry about Force’s Unified Platform. major esports events; “We’ve seen a students and their an adversary significant increase families participating in the cyber mission in entertainment, exploiting and demands from cultural and learning our customers,” adds experiences; and leading vulnerabilities. Viergutz. “We are experts who will use the — Fred Ramirez, Principal, counted on to address the facility to collaborate CNF Technologies most complex offensive while they create, ” and defensive challenges showcase and sell their latest technological that our customer faces.” innovations. Additionally, the innovation CNF Technologies, founded in San Antonio center will increase the reach of innovative in 2005, is opening its second facility at learning experiences that inspire and educate the port. One of the city’s largest software people — from K-12 students to working developers and fastest-growing cybersecurity professionals — and guide them toward career providers, CNF Technologies primary clients and entrepreneurial pathways involving the tech are government agencies, law enforcement and breakthroughs originating in the region. counterintelligence operations. Another key component to the talent “Everybody that has a computer on their desk equation, the San Antonio Museum of Science has to worry about an adversary exploiting and Technology has become an essential vulnerabilities,” explains CNF Technologies partner in inspiring the next generation of tech Principal Fred Ramirez. “We have a spectrum professionals. The museum recently launched a of services that we provide, such as reverse new public, security operations center that allows engineering, certification accreditation and visitors to engage in cyber threat simulations. penetration testing. And our personnel is also Programs like this give students hands-on co-located with our clients as they monitor the experience combating simulated cyber threats. military’s largest networks.” “We have a niche in cybersecurity,” adds CEO Safe Base of Operations Roxanne Ramirez. “That’s all we do.” Lockheed Martin, the largest defense Recently, CNF Technologies partnered with contractor in the U.S., was the first company the University of Texas at San Antonio (UTSA) as to launch operations in Project Tech Building 1 the institution establishes its National Security secure facility for cybersecurity operations in Collaboration Center (NSCC), which will advance March 2019. The site is located directly across research, education and workforce development the street from the headquarters of the 24th Air in cybersecurity, data analytics and cloud Force’s Cyber Command. computing. Along with the Port, the NSCC is a “Being co-located is important,” said Lockheed vital cog in bolstering the region’s status as a Martin Vice President of Spectrum Convergence tech and cyber epicenter.

TEXAS ECONOMIC DEVELOPMENT GUIDE 71 BIOTECHNOLOGY

he Texas A&M Center for Innovation in Advanced Development and Manufacturing is a medical R&D facility tailor made for the times. One of only three such public-private partnerships Testablished under the auspices Riding to the of the U.S. Department of Health and Human Services, the Center is charged with accelerating research and development of vaccines and therapeutics for rapid production during pandemics and other national Rescue emergencies. As such, CIADM is playing a critical role in global When the pandemic arrived, battle against COVID-19. In January 2021, CIADM its long- Texas A&M was ready to time partner, FUJIFILM Diosynth Biotechnologies, announced the saddle up. start of production of a COVID-19 vaccine candidate with the support of the U.S. government’s Operation Warp Speed. FUJIFILM Diosynth is manufacturing the NVX-CoV2373 by GARY DAUGHTERS vaccine of Maryland-based Novavax in support of Phase III clinical trials. A university spokesman says the Center is producing a second candidate vaccine in conjunction with the French pharmaceutical giant, Sanofi. The federal government first reserved space at the facility in July 2020 by tapping into its agreement with the CIADM, which oversees the largest scale-out cell culture manufacturing plant in the U.S. Moving swiftly, FUJIFILM Diosynth accelerated a planned capacity expansion and added 260 positions, thus doubling its local workforce. “Our team has worked around the clock since July and we’re starting to see light at the end of the tunnel,” said Dr. Gerry Farrell, Chief Operating Officer, FUJIFILM Diosynth Biotechnologies, Texas. “There is great pride and satisfaction on our team for being part of the solution to the pandemic. We are pleased to bring our technical expertise and world-class facilities to support the mission of Operation Warp Speed in bringing a safe and effective vaccine to the world.”

72 TEXAS ECONOMIC DEVELOPMENT GUIDE Photo: Getty Images

The Center is also part of the demand for virus products Public Health Preparedness and continues to outpace the capacity Response initiative that has been for production under the stringent established at the Texas A&M Health practices required by regulatory Science Center (TAMHSC). As such, agencies for human use,” said when the pandemic arrived, A&M Matica Bio CEO Byung Se So, was ready to join the fight. at groundbreaking. “Our new “The Texas A&M System is proud facility will help to close that to be part of this unprecedented gap by establishing state-of-the- manufacturing effort,” said John art, modular virus production Sharp, Chancellor of The Texas cleanrooms integrated with the A&M System. “Our partnership with latest vector technologies to FUJIFILM Diosynth Biotechnologies maximize speed, flexibility and confirms the importance of the efficiency throughout our clients’ CIADM program for Texas, the product development cycle.” nation and the world.” So heaped praise on the biotech cluster that has steadily arisen Texas Joins the Race to around Texas A&M. Build Capacity “The Brazos Valley area, including With the COVID pandemic having College Station, is rapidly becoming shone exposed a national shortage one of the most important centers of drug manufacturing capacity, of biotechnology in the country, another new project involving and it was an easy decision for CIADM takes on outsized our company to locate here. The importance. Matica Biotechnology, availability of a skilled workforce new partner of the Center and a along with the influence of the contract development Texas A&M University System, will and manufacturing support the level of rapid job growth organization, broke that we expect throughout the next ground in February 2021 few years.” on a new production Matica’s 25,000-square-foot facility facility. Matica specializes in College station is to house virus in clinical and commercial production suites, development production of cell and laboratories and offices. It is gene therapies. designed for the rapid development, “The global scale-up and production of

74 TEXAS ECONOMIC DEVELOPMENT GUIDE Lentivirus and AAV products for The Brazos Valley area, clinical supply. An affiliate of CHA Biotech, Matica provides including College Station, viral vector GMP manufacturing “ services for cell and gene therapies, is rapidly becoming one vaccines, oncolytic vectors and other advanced therapy products. of the most important Separately, the CIADM also works centers of biotechnology closely with Zoetis, Inc., a global animal health company, and iBio in the country. Inc., a plant-based biotech innovator — Byung Se So, CEO, Matica Bio and contract manufacturing organization. Like Matica Bio and Johnson & Johnson, Medtronic St.” FUJIFILM Diosynth, Zoetis and iBio Jude Medical and Stryker sharing a have invested in manufacturing presence in the Lone Star State. centers near the Texas A&M campus. The Texas Medical Center (TMC) is the world’s largest medical complex, An All-Around Leader and is also home to the world’s As home to more than 4,000 life largest children’s hospital — the sciences firms, and with more than Texas Children’s Hospital — and 100,000 workers employed in the the world’s largest cancer hospital field, Texas is one of the leading life — MD Anderson Cancer Center. sciences states in the country. Since opening in 1945, TMC has Top Fortune 500 companies such been at the forefront of advancing as Kimberly-Clark and Celanase are life sciences through pioneering based in Texas. Other global leaders patient care, research, education and with operations in Texas include prevention. McKesson, Galderma, Novartis, Texas A&M is currently is building Abbott, Allergan, Lonza, Johnson & a half-billion-dollar health sciences Johnson and Medtronic. complex at TMC. The $546 million The state has also become a leader complex includes $145 million in medical device manufacturing, toward the purchase and renovation with industry leaders including of the 18-story “EnMed” building, as Abbott Laboratories, Agilent well as $401 million in private-sector Technologies, Baxter International, funding to build two new towers Becton Dickinson, CareFusion, GE, adjacent to the EnMed structure.

TEXAS ECONOMIC DEVELOPMENT GUIDE 75 TECHNOLOGY

TechTech LeadersLeaders RushRush toto TexasTexas Waves of tech leaders from the West Coast are cascading on the Lone Star State.

hen the company that started it in the Lone Star State by relocating their all in Silicon Valley announces its headquarters to the Houston region,” said plans to relocate its headquarters Governor Greg Abbott. “Hewlett Packard to Texas, it’s time to take notice. Enterprise joins more than 50 Fortune 500 In December, Hewlett Packard companies headquartered in the Lone Star Enterprise (HPE) announced plans State, including 22 in the Houston area alone. to relocate its global headquarters That is because Texas offers Wfrom San Jose, California, to the best business climate in by SAVANNAH KING Spring, a Houston suburb. The the nation. Our low taxes, company began constructing a new, state-of- high quality of life, top-notch workforce, and the-art campus at the beginning of the year. tier-one universities create an environment HPE already has a significant presence across where innovative companies like HPE can Texas, with locations in Austin, Plano and flourish. We look forward to a successful Houston — the latter of which is home to more partnership with HPE, as together we build a than 2,600 employees and is the company’s more prosperous future for Texas.” largest employment hub. HPE currently HPE’s headquarters will be located on a new operates significant product development, state-of-the-art campus, expected to open services, manufacturing, and lab facilities in in early 2022. HPE already has a significant Houston and Austin. HPE noted the company’s presence across Texas, with locations in already extensive presence in Houston, its Austin, Plano and Houston — the latter is diverse talent base, and anticipated cost saving home to more than 2,600 employees and is the as the reasons Houston was selected for the company’s largest employment hub. relocation. “As we look to the future, our business Compared to coastal states, Texas offers needs, opportunities for cost savings, and significant savings and no corporate income team members’ preferences about the future tax. The state’s highly innovative technology of work, we are excited to relocate HPE’s ecosystem and deep, hardworking talent pool headquarters to the Houston region,” said make an ideal home base for tech firms. Antonio Neri, CEO of HPE. “Houston is an “We are excited that Hewlett Packard attractive market to recruit and retain future Enterprise has chosen to call Texas home, and diverse talent and where we are currently I thank them for expanding their investment constructing a state-of-the-art new campus. We

76 TEXAS ECONOMIC DEVELOPMENT GUIDE Houston skyline Photo: Getty Images

look forward to continuing to expand our strong economic prosperity, there is no place like the presence in the market.” Lone Star State.” FileTrail, the leader in next-generation From the Valley to the Hills information governance and records management Austin — AKA “Silicon Hills” — is home software for law firms and highly regulated to a robust technology base with longtime industries, announced it too would move its tech companies like Dell Technologies, IBM, headquarters to Austin. Apple, Samsung and Microsoft. Recent years The relocation is primarily due to FileTrail’s have brought sizable government operations growth, including the need to accommodate its to the region, including the Army Futures recently expanded team. Command Post. FileTrail’s new headquarters is in the up- Tech firms continued to head for the hills in and-coming area of East Austin. The company 2020, as work-from-home orders have changed is leasing a space twice the size of its previous the professional landscape. office in San Jose, California, FileTrail’s home In December, Oracle relocated its corporate for its first 20 years in business. The new space headquarters to Austin from Redwood City, better accommodates the company’s growing California, to implement a more flexible employee staff, already nearly double what it was a year work location policy, according to the company. ago, and is suited for anticipated additional “Oracle is a global technology giant with an expansion in the coming months and years. already strong presence here in Texas, and we “The year 2020 marks more than just FileTrail’s are proud to welcome its headquarters to Austin,” 20th in business; this is also the start of an said Gov. Greg Abbott. “While some states are exciting new chapter for our company,” says driving away businesses with high taxes and FileTrail CEO Darrell Mervau. “While the greater heavy-handed regulations, we continue to see a Bay Area will always be a special place for the tidal wave of companies like Oracle moving to FileTrail family, our recent growth prompted the Texas thanks to our friendly business climate, need to explore options for a larger headquarters. low taxes, and the best workforce in the nation. Our new location is a great fit for our expanding Most important of all, these companies are team and affords us much-needed flexibility looking for a home where they have the freedom for continued growth. We are grateful to the to grow their business and better serve their Austin community for already making us all feel employees and customers, and when it comes to welcome.”

TEXAS ECONOMIC DEVELOPMENT GUIDE 77 AGRIBUSINESS & FOOD PROCESSING Food Producers Expand in Texas to Meet Increased Consumer

by SAVANNAH KING

t seems stay-at-home orders across Prairie, this new distribution center augments the U.S., in response to the COVID-19 HelloFresh’s existing production and shipping pandemic, have had a significant impact capabilities in the Dallas-Fort Worth metro on people’s eating habits — and the food area. By being co-located with its other production industry. With more people facility in the same market, HelloFresh is eating meals at home, food producers leveraging operational efficiencies while have seen increased demand for their tapping into existing supplier relationships Iproducts, spurring several expansions at food and a strong workforce. processing facilities across the U.S. “These latest centers support our investment One of the world’s largest meal kit in long-term growth as we execute on companies, Berlin-based HelloFresh, is our strategy to continue expanding our opening a new state-of-the-art facility in total addressable market through fresh Irving to meet rapidly increasing demand for geographies, new customer segments and their products. In August, the company leased various demographics,” said Uwe Voss, CEO a new production and distribution facility of HelloFresh U.S. “To achieve this, we to increase overall production capacity by are expanding supply chain capacity and more than 30%. The nearly 375,000 sq. ft. actively iterating on our menu to satisfy new distribution center — HelloFresh’s largest and existing customers, expanding recipe facility to date — will include office space, selection, adding more convenient offerings cold storage, packing and shipping areas, and and increasing meal customization options to could provide as many as 1,200 new jobs for maintain our long-term growth momentum.” the area as HelloFresh expands its presence to continue supporting rapidly growing demand Breakfast Facility Expands in Hometown and new customer growth in the South and Arkansas-based Tyson Foods, Inc. is Midwest regions of the U.S investing $26 million to expand production at Alongside its current facility in Grand its Wright® Brands Bacon facility in Vernon

78 TEXAS ECONOMIC DEVELOPMENT GUIDE Goya Foods announced an $80 million expansion of its manufacturing and distribution facility in Brookshire. Photo courtesy of Tyson to satisfy current demand and allow plants in Texas, employing more room for additional growth. The than 12,000 team members and bacon brand has had a home in paying more than $480 million in Vernon since 1922. The expansion is annual wages as of the most recently expected to create 32 new jobs that completed fiscal year. The company will bring total employment to more also contracts with more than 230 than 800. poultry growers and more than The bacon category has seen 90 cattle suppliers in the state. It’s increased volume in retail growth, estimated Tyson Foods’ operations up 18% since 2017, as new people have a total annual impact of nearly enter the market and existing $3 billion in Texas. buyers consuming more bacon, most recently due to increased at-home Goya Grows in Texas meals. Surpassing category growth In October, the largest Hispanic- during this period, Wright Brand has owned food company in the U.S., Goya increased volume by 29% as more Foods, announced a new $80 million buyers are introduced to the brand. expansion of its manufacturing and distribution facility in Brookshire. Arkansas-based The expansion will double production capacity to meet increased Tyson Foods, Inc. is consumer demand. $ Goya’s Texas facility sits on a 130- investing 26 million to acre farm has served as the prime expand production hub for the manufacturing and ® distribution of Goya products in the at its Wright Brands West and provides key access to a Bacon facility in Vernon skilled workforce, a favorable business climate, railroad transportation, and a “We’re pleased we can continue launching pad for global export. to build on the proud heritage of “Goya is committed to meeting this iconic and delicious brand,” said increased consumer demand for our Noelle O’Mara, group president of products from all consumers across Prepared Foods for Tyson Foods, Inc. the United States and abroad. We “More importantly, we’ve had a strong are grateful for the overwhelming presence in Vernon for nearly 100 support of the Goya brand, and we years as one of the largest employers. are fortunate to be able to give back It’s an honor to continue that long to communities around the globe history by adding new jobs in the donating millions of pounds of food local community.” through our Goya Gives program,” Tyson Foods and its family of said Bob Unanue, President and CEO companies operate 10 food processing of Goya Foods.

TEXAS ECONOMIC DEVELOPMENT GUIDE 79 AEROSPACE, AVIATION & DEFENSE

TEXAS: HOME BASE FOR SPACE EXPLORATION

by SAVANNAH KING

f you are one of Elon support personnel in the area Musk’s 45 million as it continues to grow. Twitter followers, you While impressive, SpaceX may have noticed a is hardly the only company number of tweets calling in Texas aiming for the stars. attention to Brownsville, Texas has long been home to Texas. Specifically, the CEO leaders in aerospace, aviation Iof Tesla and SpaceX has asked and defense with major his followers to consider operations including Boeing, moving to the yet-to-be- Bell Helicopter, Lockheed built city of Starbase, near Martin, Raytheon, L-3 Brownsville and South Padre Communications and General Island. SpaceX has operated Dynamics. The U.S. Army a launch site in Boca Chica also recently selected the since 2012, where it tests its state as the location for its Starship prototypes that the first Army Futures Command company hopes will one day Headquarters. take people to Mars. Musk’s Founded in 2016, Houston- tweets noted SpaceX will based Axiom Space, Inc., is be hiring more engineers, developing the world’s first technicians, builders and commercial space station. Photo courtesy of SpaceX

80 TEXAS ECONOMIC DEVELOPMENT GUIDE Axiom recently secured $130 million in a new round of venture funding which will accelerate the growth of the company’s workforce and construction of its privately developed space station. The Axiom Station will serve as the central pillar of a thriving network of commerce in Earth’s orbit — a linchpin of a space economy that Bank of America and Morgan Stanley both project could be valued at more than $1 trillion in the next few decades. “Axiom Space is a force in the BAE Systems is expanding its Austin campus with a new 390,000-square- space sector, and it will become foot-facility. Photo courtesy of credit BAE Systems a centerpiece of the C5 Capital portfolio and enhance our vision for a secure global future,” said C5 the Austin Capital Factory, which The new facility is located operating partner Rob Meyerson, is central to the innovation near the U.S. Army’s Futures who will join the Axiom Board of and entrepreneurial ecosystem Command, as well as the Directors. “The Axiom Station will in Austin. Austin Capital Factory. BAE be the infrastructure upon which When completed, BAE Systems’ Systems is a member of the we will build many new businesses new campus will be valued at Capital Factory’s Innovation in space, and it will serve as the approximately $150 million Council and collaborates with foundation for future exploration and will include engineering, startups and small businesses missions to the Moon, Mars, manufacturing, laboratory, to accelerate the development and beyond.” and office space to primarily of new defense technology for In January, Axiom revealed its support U.S. Department of America’s military. BAE Systems’ plans to fly a historic first private Defense customers. BAE Systems Austin employees innovate for a astronaut crew to the International is working with Karlin Real wide range of programs in the Space Station (ISS) no earlier than Estate on construction of its new areas of autonomy, cyber, sensor January 2022. NASA selected 390,000-square-foot-facility which development and electronic Axiom to begin attaching its own will begin this year and is expected warfare, and manufacture those space station modules to the ISS to be complete in 2022. leading-edge capabilities on the in January 2020. The company Scott Hatch, Site Director of BAE company’s factory floor. plans to deliver as early as 2024. Systems Austin Business Center, By late 2028, Axiom Station will explained the company’s expansion • “Talent: Austin is a great place be ready to detach when the ISS in Austin came down to three to attract and retain a diverse is decommissioned and operate factors. workforce. It is an ideal location independently as its privately • “Community: BAE Systems to attract the talent we need to owned successor. has a rich history — over deliver the latest capabilities to 65 years — in the Austin our customers.” BAE Systems Expands community. This expansion Austin Operations. continues our longstanding “Our expansion continues our In August 2020, BAE Systems, legacy of innovation in Austin, longstanding legacy of innovation one of the world’s leading while also preparing us for in Austin to grow next-generation aerospace and defense technology our projected engineering and capabilities that include the design, companies, expanded its operations manufacturing growth. development, and manufacturing in Austin with a new campus of radio frequency and electro- development in Parmer Austin • “Innovation: The innovation optical/infrared countermeasure Business Park. The new facility ecosystem in Austin is unique systems primarily for our aerospace is located near the U.S. Army’s and we want to continue and defense technology customers,” Futures Command, as well as to be an active participant. said Hatch.

TEXAS ECONOMIC DEVELOPMENT GUIDE 81 REGION PROFILE — HIGH PLAINS

HIGH PLAINS DRIFTING by RON STARNER Logistics networks link manufacturers in Amarillo, Lubbock to major markets.

Texas Tech University in Lubbock Courtesy of Travel Texas/Jamie Hudson

82 TEXAS ECONOMIC DEVELOPMENT GUIDE f you’ve ever driven Amazon for a distribution 2020 AMARILLO’S TOP PROJECT SECTORS through the northern warehouse in Lubbock, SECTOR PROJECTS panhandle of Texas, adding 279 new jobs. you’ve witnessed the Texas Tech University IT & COMM. 1 windswept plains and in Lubbock is the flagship AUTOMOTIVE 1 vistas that cover vast college in this region, but a FOOD & BEVERAGE 1 stretches of territory from strong network of community TRANSPORT & LOGISTICS 1 IOklahoma to New Mexico. colleges and other 4-year This 41-county High Plains universities also dot the MACHINERY, EQUIP. & CONST. 1 region covers 39,500 square High Plains. miles and includes two Interstate 40 is the primary 2020 LUBBOCK’S TOP PROJECT SECTORS large metropolitan areas: east-west thoroughfare, Amarillo and Lubbock. About linking the High Plains with SECTOR PROJECTS 872,000 people live in this both coasts of the United IT & COMM. 3 north Texas region and States of America. One can LIFE SCIENCES 2 account for 3% of the state’s merge onto I-40 in eastern population. Since 2010, the North Carolina and drive MACHINERY, EQUIP. & CONST. 2 High Plains have experienced this highway all the way to BUSINESS & FINANCIAL SERVICES 2 a population increase of California and the Pacific TRANSPORT & LOGISTICS 2 nearly 4%. Coast. It also serves as the FOOD & BEVERAGE 1 Major industries in the main alternate route to the region include animal famed Route 66. Source: Conway Data production and aquaculture; oil and gas extraction; mining; leather and allied product manufacturing; food manufacturing; crop production; pipeline transportation; petroleum and coal products manufacturing; agricultural and forest-related support activities; and heavy and civil engineering construction. In 2020, the region landed a number of significant corporate facility investment projects. Among the more notable deals were a $14 million investment from

Sharpened Iron Studios Courtesy of Travel Texas/Jamie Hudson in Amarillo, creating 40 jobs; a $10 million new Multiple airports and major manufacturing plant from rail lines also serve the THE LUBBOCK MSA Caviness Beef Packers in 41 counties in this region, Amarillo; an $87 million making the High Plains a ACCOUNTS FOR 37% investment from General highly desirable location OF THE POPULATION Advanced Food in Lubbock, for manufacturing, food generating 125 jobs; and a processing, logistics and IN THE HIGH $24 million investment by distribution. PLAINS REGION.

Source: Texas Comptroller

TEXAS ECONOMIC DEVELOPMENT GUIDE 83 REGION PROFILE — NORTHWEST

NORTHWEST TEXAS DRAWS INVESTMENT ACROSS SECTORS

by SAVANNAH KING

Courtesy of the Development Corporation of Abilene

84 TEXAS ECONOMIC DEVELOPMENT GUIDE exas’s Northwest region Oklahoma City. This key cross 2020 ABILENE’S TOP PROJECT SECTORS is a 30-county area point is a regional hub for both stretching from the North Texas and South Central SECTOR PROJECTS Oklahoma border to the Oklahoma. The city attracted MACHINERY, EQUIP. & CONST. 2 Colorado River, from Big several significant investments Spring to Fort Worth. from a variety of industries AEROSPACE 1 The region includes the MSAs in 2020. Tof Abilene and Wichita Falls. In June, Pamlico Air, a high- 2020 WICHITA FALLS’ TOP PROJECT SECTORS In 2019, the region’s quality air filter manufacturer, population was approximately opened a new manufacturing SECTOR PROJECTS 550,500. The region’s facility in Wichita Falls. With MACHINERY, EQUIP. & CONST. 1 workforce is supported by additional facilities in Florida, TEXTILES 1 several higher education North Carolina and Nevada, its institutions, including new 180,000 sq. ft. site is also Source: Conway Data Midwestern State University its largest facility. in Wichita Falls, Texas State In September, Dallas-based Technical College and Texas Panda Biotech selected Wichita Tech Health Sciences Center in Falls to be the home of the Abilene. According to the Texas largest and most state-of-the- Comptroller’s office regional art industrial hemp processing report, Dyess Air Force Base center in the United States. The and Sheppard Air Force Base Panda Texas Plains Hemp Gin supports nearly 42,000 jobs in the region. Abilene is the heart of the Northwest Texas is a region’s economic engine. The city is a powerhouse for the oil and gas industry (representing regional hub for both a $1.22 billion economic impact on the area) and renewable North Texas and South wind energy. Abilene is home to Broadwind Energy, General Electric, Run Energy and Central Oklahoma. TGM Wind. The city is also a stronghold for health care, will also be the first facility in education and manufacturing, the nation to cottonize hemp aviation and aerospace. fiber on a commercial scale for Hartmann’s Inc., a the American textile industry homegrown Abilene company and export customers since 1955, recently expanded In February 2021, Vexus into a new 100,000 sq. ft. Fiber, the leading fiber service facility, representing a $12.5 provider in West Texas, began million investment. The constructing a 10 Gigabit fiber- company produced precision to-the-home network in the parts for large companies, city. The network will connect including Johnson & Johnson, to more than 30,000 new Boeing, Lockheed Martin, homes and businesses in the Emerson Automation and more. area. This network expansion Nearly 150 miles away, is part of ongoing construction Wichita Falls offers businesses that will bring Vexus services a strategic position at the to more than 19,000 homes midpoint between the Dallas- and businesses in Wichita Falls Fort Worth metroplex and before the end of 2021.

TEXAS ECONOMIC DEVELOPMENT GUIDE 85 REGION PROFILE — METROPLEX

METROPLEX SPURS INNOVATION AND TECHNOLOGY GROWTH

by SAVANNAH KING

Photo: Getty Images

86 TEXAS ECONOMIC DEVELOPMENT GUIDE 2020 DALLAS - FORT WORTH - ARLINGTON’S TOP PROJECT SECTORS

SECTOR PROJECTS MACHINERY, EQUIP. & CONST. 51 BUSINESS & FINANCIAL SERVICES 48 TRANSPORT & LOGISTICS 41 IT & COMM. 34 FOOD & BEVERAGE 23

Source: Conway Data

allas’ reputation for Throughout 2020 and the spurring innovation first part of 2021, several with homegrown companies announced companies like Dell expansions and relocations Technologies hasn’t to the region. Companies slowed down over like CBRE, Charles Schwab, the years. If anything, it is Core-Mark, and McKesson Dattracting a new generation moved their headquarters to of technology leaders to the area, while others like the region. Uber, Toyota and Vistaprint The 19-county Metroplex significantly expanded their region covers approximately operations. Additionally, 15,600 miles in northern the DFW region is home Texas, reaching from to 3 of the 10 largest U.S. Oklahoma to the Brazos operations (ExxonMobile, River. The region includes McKesson and AT&T) the Dallas-Forth Worth- According to the Dallas Arlington (DFW) and Chamber, DFW has the Sherman-Denison MSAs. 6th-largest concentration of Home to about 8 million high-tech jobs in the U.S. It’s people, the region has also No. 2 for large metro grown steadily since 2010. annual job growth. With a The DFW region accounted robust talent pipeline, the for 94.9% of the region’s region enrolls more than population in 2019. Dallas 380,000 students annually is the third-largest city in at many public and private the state. Dallas and Fort colleges and universities. Worth are also among the Logistically, the region fastest-growing cities in offers easy access to the the country. globe. The Dallas Fort The region supports Worth International various industries, including Airport’s cargo network defense, financial services, connects the region to 28 corporate headquarters, major hubs around the information technology, world. The first high-speed semiconductors, railway in the nation can manufacturing, also take riders from Dallas telecommunications, and to Houston in less than 90 logistics. minutes. REGION PROFILES — UPPER EAST TEXAS

UPPER EAST: AT THE CORNER OF THE SOUTHEAST

by SAVANNAH KING

Tyler State Park photos Courtesy of Travel Texas/Jaime Hudson

88 TEXAS ECONOMIC DEVELOPMENT GUIDE pper East Texas Northeast Texas and will offers a business serve as a key pipeline friendly and for the region and state’s 2020 LONGVIEW’S TOP PROJECT SECTORS affordable location health care workforce. SECTOR PROJECTS for businesses. This 16,000 square This region is a powerhouse MACHINERY, EQUIP. & CONST. 2 mile region stretches along in mining and oil and gas FOOD & BEVERAGE 1 Uthe Arkansas and Louisiana extraction. The region’s TRANSPORT & LOGISTICS 1 Border to the western forestry and wood product boundary of Cedar Creek industries and distribution BUSINESS & FINANCIAL SERVICES 1 Reservoir. The Upper East sectors are also strong. In CHEMICALS & PLASTICS 1 region of Texas is home Tyler, three hospitals round CONSUMER PRODUCTS 1 to three MSAs: Longview, out the region’s diverse ENERGY 1 Texarkana and Tyler. In 2019, industry base. Over a quarter the region’s population was of the city’s workforce is estimated to be about 1.2 employed in health care. 2020 TYLER’S TOP PROJECT SECTORS million, or approximately 4% The Upper East region’s SECTOR PROJECTS of the state’s total population. workforce is skilled and well-educated. Since BUSINESS & FINANCIAL SERVICES 2 • Longview: Distribution 2010, the region’s high METALS 1 centers have found a key school graduation rate has MACHINERY, EQUIP. & CONST. 1 location in Longview. outperformed the state’s rate. Earlier this year, Gap After high school students Inc. announced plans to have a number of higher build a new $140 million Customer Experience Center in the city to support rising demand in online shopping and increased digital growth.

• Texarkana: Located on the border of Texas and Arkansas, this city offers businesses the best of both worlds. Manufacturing, defense, health care and logistics all benefit from the city’s logistic advantages.

• Tyler: Located midway between Dallas and Shreveport, Louisiana, education institutions to

Tyler is a regional hub for choose from in the region 2020 TEXARKANA’S TOP PROJECT SECTORS logistics and health care. including Texas A&M In 2020, the University of University — Texarkana, SECTOR PROJECTS Texas System announced Texas College, The University AEROSPACE 1 it would build a new of Texas at Tyler, and others. METALS 1 University of Texas The region’s 9 community Health Science Center and technical colleges enroll AUTOMOTIVE 1

at Tyler. The school is approximately 37,000 students Source: Conway Data the first of its kind in annually.

TEXAS ECONOMIC DEVELOPMENT GUIDE 89 REGION PROFILE — SOUTHEAST

POWERED UP IN SOUTHEAST TEXAS

by RON STARNER

Beaumont-Port Arthur Photo: Getty Images

90 TEXAS ECONOMIC DEVELOPMENT GUIDE key player in the congress to deepen and global energy widen the channel, opening 2020 BEAUMONT-PORT ARTHUR’S industry, Southeast the local ports to increased TOP PROJECT SECTORS Texas is home to travel and tonnage. the world’s largest Beaumont-Port Arthur’s SECTOR PROJECTS oil refineries. connection to the Port of CONSUMER PRODUCTS 1 Several of the biggest names Houston through several Ain the global commerce call major highways, a regional FOOD & BEVERAGE 1 the region home including airport and rail service by METALS 1 Exxon, Motiva Enterprises multiple Class 1 carriers, CHEMICALS & PLASTICS 1 and Valero. provides businesses with The area has also easy access to global Source: Conway Data become a key location commerce. for sophisticated medical instruments, precision Beaumont-Port Arthur industrial equipment, wood Photo: Getty Images pellet manufacturing and advanced manufacturing. Beaumont is also a hub for the region’s health care and is a central referral point for patients in Southeast Texas and Southwest Louisiana. According to the Southeast Texas Economic Development Foundation, multiple industries in the region are expanding — representing $54 billion in current projects and long-term investments. The foundation notes Southeast Texas is built for production with a high concentration of engineering firms, fabrication shops, Lamar University in contractors, industrial Beaumont enrolls 16,000 supply manufacturers students annually. The and large equipment university has established distributors. itself as a global leader Beaumont - Port According to the in engineering — due Southeast Texas Economic in part to its close ties Arthur is ranked Development Foundation, with the petroleum and three major ports, two river chemical industries. No. 16 for Cost of authorities and a navigation Additionally, Lamar Institute district provide access to of Technology, Lamar national and international State College Port Arthur, Doing Business markets by way of barge Lamar State Orange and Source: Forbes and deep sea vessels. The Angelina College serve Sabine Neches Waterway the region’s workforce and was recently approved by industry needs.

TEXAS ECONOMIC DEVELOPMENT GUIDE 91 REGION PROFILE — GULF COAST FROM HOUSTON TO THE GLOBE

by SAVANNAH KING

region once focused predominantly on oil and gas has since grown into a highly sought- after location for global corporations across a wide swath of industries. AThe 13-county Gulf Coast region encompasses eastern coastal Texas from Huntsville to Galveston. The region’s major economic center is the Houston-The Woodlands- Sugarland MSA and is home to 7 million people. Houston, the nation’s fourth-largest city, is one of the fastest-growing and most diverse in the state. The region supports a well- developed suite of global industries, including energy, life science, manufacturing, logistics and aerospace. According to Greater Houston Partnership, the city is home to 20 Forbes Global 2000 headquarters. Additionally, 44 out of 113 U.S. publicly traded oil and gas companies are in the city.

Courtesy of Travel Texas

92 TEXAS ECONOMIC DEVELOPMENT GUIDE

Courtesy of Travel Texas

Houston ranked No. 4 among U.S. metro Areas in Fortune 500 headquarters.

Port of Houston is the No. 1 Port in U.S. (Ranks fi rst in total tonnage)

Source: U.S. Army Corps of Engineers Navigation and Civil Works Decision Support Center

In November, tech giant The region boasts an educated 2020 HOUSTON, THE WOODLANDS, & Hewlett Packard Enterprise population, with 32% holding SUGAR LAND’S TOP PROJECT SECTORS announced it would relocate at least a bachelor’s degree. its corporate headquarters The region is home to more SECTOR PROJECTS from San Jose, California to than 20 public and private MACHINERY, EQUIP. & CONST. 48 Houston — adding another universities and colleges, BUSINESS & FINANCIAL SERVICES 30 Fortune 500 company to including three Tier 1 its roster. In December, universities. ENERGY 25 Axiom Space announced it Houston is also well- FOOD & BEVERAGE 23 would build the world’s first connected with four CHEMICALS & PLASTICS 20 commercial space station at deepwater seaports and TRANSPORT & LOGISTICS 16 its new headquarters at the two international airports. Houston Spaceport. The city is equidistant from METALS 14 The region offers a diverse the east and west coasts LIFE SCIENCES 14 and highly skilled labor providing companies with CONSUMER PRODUCTS 9 force of more than 3 million an ideal base to distribute IT & COMM. 8 workers — larger than 35 products. The region’s states. One of the fastest- extensive highway system Source: Conway Data growing regions in the includes Highways 10 and country, Houston is also one 45 and I-69 — the “NAFTA of the top cities for attracting superhighway” — that will millennials and ranks No. 1 in link Canada and Mexico upon retaining college graduates. completion.

94 TEXAS ECONOMIC DEVELOPMENT GUIDE

REGION PROFILE — CENTRAL TEXAS

BIO CENTRAL Central Texas’ Biocorridor Brings Innovations to Global Markets

by SAVANNAH KING

Texas A&M University in College Station Photo: Getty Images

96 TEXAS ECONOMIC DEVELOPMENT GUIDE entral Texas’ unique made the list at No. 22. combination of higher According to the Brazos College Station education, logistical Valley Economic Development ease and innovation Corporation the region is is the No.1 city create a breeding an international leader in ground for life-saving the fields of engineering, in the nation biomedical advancement. agriculture and biomedical for career CCentral Texas covers innovations. The region’s a region of 20 counties “Biocorridor” is home to opportunities spanning about 17,400 square several companies like miles in the heart of the vaccine manufacturers in the COVID-19 Lone Star State. The cities iBio and Fujifilm Diosynth of College Station-Bryan, Biotechnologies, which Recession. Killeen-Temple and Waco recently completed its facility Source: SmartAsset are the major economic expansion in College Station. and population centers in Matica Biotechnoclogy Inc. the region. This region is located at the center of the Texas Triangle, which is formed by Houston, Dallas-Fort Worth and San Antonio, giving businesses easy access to markets across the state. By 2050, more than 35 million people are expected to live inside the Texas Triangle region (including Austin.) Home to approximately 1.2 million people in 2019, the region has a young, skilled population. According to the Texas Comptroller’s Office, in 2019 three of the region’s Albritton Bell Tower counties had a median age Photo: Getty Images significantly below the state median age of 34.2 years in announced in December it 2018. These three counties 2020 COLLEGE STATION, BRYAN’S Bell (30.4 years), Brazos (25.5 would expand its College TOP PROJECT SECTORS years) and Coryell (31 years), Station production facility combined with McLennan (33 for product development and SECTOR PROJECTS years) — make up a majority manufacturing. MACHINERY, EQUIP. & CONST. 3 of the region’s population, With more than 80,000 TRANSPORT & LOGISTICS 2 with Brazos County boasting students in the region, higher one of the “youngest” education institutions include IT & COMM. 2 populations in the state. Baylor University, Texas A&M LIFE SCIENCES 2 According to SmartAsset, University and the Texas BUSINESS & FINANCIAL SERVICES 2 College Station is the No.1 A&M Health Science Center ELECTRONICS 1 city in the nation for career in Bryan, as well as several opportunities in the COVID-19 community and technical Source: Conway Data Recession. Killeen-Temple also colleges.

TEXAS ECONOMIC DEVELOPMENT GUIDE 97 REGION PROFILE — CAPITAL

2020: AUSTIN’S CAPITAL YEAR

by SAVANNAH KING

ustin, the birthplace of Dell Technologies, is the economic hub of Texas’ Capital Region. The 10-county Capital region in central Texas stretches from Llano Ato San Marcos, La Grange to Georgetown. Home to approximately 2.4 million people, almost 95% of the region’s population lives in the Austin- Round Rock MSA. The Capital region is a key hub for innovation with some of the biggest names in technology including Apple, 3M, Amazon, Google, IBM, Oracle, Intel, Texas Instruments and many more.

Courtesy of Travel Texas

98 TEXAS ECONOMIC DEVELOPMENT GUIDE Austin’s nickname of Silicon Hills signals to the region’s strong tech base and innovative startup culture. 2020 was a banner year for the city which saw several relocations and expansions from the likes of Oracle, Amazon and BAE Systems. According to the Austin Chamber, these investments resulted in a record-breaking 22,114 jobs being announced. This was no small feat in a year so full of challenges. A large piece of the city’s success in 2020, came as the result of the Tesla Gigafactory announcement. Set to be located in eastern Travis County, the Gigafactory will be one of the largest and most advanced automotive plants in the world. Tesla expects to generate up to 5,000 jobs and will bring $1 billion in capital investment to the region. The region’s deep talent pool is bolstered by the presence of several institutions of higher education including, The University of Texas at Austin, Texas State University, Austin Community College, and The University of Texas at Austin Dell Medical School.

2020 AUSTIN, ROUND ROCK’S TOP PROJECT SECTORS SECTOR PROJECTS MACHINERY, EQUIP. & CONST. 21 BUSINESS & FINANCIAL SERVICES 20 IT & COMM. 16 LIFE SCIENCES 10 FOOD & BEVERAGE 5

Source: Conway Data

TEXAS ECONOMIC DEVELOPMENT GUIDE 99 INVESTMENT PROFILE: ROUND ROCK, TEXAS

by SAVANNAH KING

Round Rock: Where quality of life and opportunity meet. n Round Rock, opportunities are found always fun to be had in Round Rock. around every corner. Additionally, the city boasts one of the Located just 20 minutes from state’s best K-12 school districts and three downtown Austin, Round Rock is a higher education institutions — Austin diverse and growing community in Community College, Texas State University Central Texas. Home to approximately and Texas A&M Health Science Center. 133,000 people and major tech organizations The city’s diverse industry clusters provide Ilike Dell Technologies Inc. and Emerson economic stability and job opportunities, while Automation Solutions, Round Rock is ideal for its nearby colleges and universities, including families and corporations alike. the University of Texas at Austin, provide In recent years, Round Rock has attracted a steady pipeline of talented employees. national attention for its affordability, Combine the region’s workforce and affordable lifestyle, and pro-business climate, earning quality of life with its business-friendly a cadre of accolades and ranking among the attitude, fast-tracked permits and economic country’s best locations. Last year, the Milken incentives, and you’ve found the region’s Institute named Round Rock the No. 3 “Best- recipe for continued economic growth. Performing City” in America. “We’ve always been very pro-business,” Recognitions like Milken’s are nothing new explains Mayor Craig Morgan. “We have one in Round Rock. In 2019 alone, Austin-Round of the lowest tax rates for a city of our size in Rock was ranked the No.1 “Best Place to the state of Texas. We’ve been able to keep it Live” by U.S. News and World Report, Round at a minimal level with minimal regulations. Rock was named one of “the Coolest Suburbs Of course, we do have regulations, but they’re in America” by Apartment Therapy, ranked not burdensome. You can get in here and the No. 2 “Best Places to Live” by Money get started on a project quickly. The process Magazine, and it was ranked among the happens much faster than it does in a lot of top cities for living the American Dream by cities across the country, and even in Texas.” Smart Asset. With its legacy as a hub for innovation, With attractions like Dell Diamond, where the city has built a rock-solid reputation for you can catch a Round Rock Express game helping businesses of all sizes scale up and (the AAA affiliate to the Texas Rangers), the grow quickly. For instance, Dell Technologies Round Rock’s Old Settlers Park newly opened Kalahari Resort & Conventions first moved to Round Rock in 1994 after is a 640-acre (which boasts a 200,000-sq.-ft. convention outgrowing its space in nearby Austin. Today, recreation and center and is home to America’s largest indoor Dell’s worldwide headquarters in Round Rock sports area. waterpark), a thriving downtown with unique employs over 13,000 people. When Emerson All photos courtesy of Round Rock shops and restaurants, and more than 34 park Automation Solutions moved its headquarters Chamber and trail corridors throughout the city, there’s to Round Rock in 2014, the company found

100 TEXAS ECONOMIC DEVELOPMENT GUIDE Fort the city’s willingness to assist its growth technology materials for clients, Worth Dallas refreshing. including the “The City of Round Rock was outstanding U.S. Department to work with,” said Jim Nyquist, president of of Defense. The ROUND ROCK relocation will create Systems and Solutions at Emerson Automation Austin Solutions. “We had a very tight schedule for 140 new jobs earning an Houston finishing the buildings and moving our 750 average wage of roughly San Antonio employees. Their attitude of collaboration $75,000 with production, between business and the city helped us meet engineering, management and all of our construction deadlines. They are administration components. ready to serve business and put every other Round Rock’s proximity to Army Futures city I’ve ever worked with to shame.” Command headquartered in Austin and the U.S. Army Fort Hood military instillation makes it Companies run to Round Rock from an ideal location for defense innovation and other locations across the country. technology firms, like Ametrine. While travel and other restrictions in 2020 “We started the search for our new U.S. delayed investments across the country, Round Rock continued to experience unprecedented growth, announcing 1,115 new direct jobs and We started the search for our $46 million in capital investment. That forward new U.S. headquarters almost momentum continued into the new year with “ several companies announcing their decision to a year ago and came to the move to the city from other states. In January, Ametrine, Inc. selected the conclusion that Round Rock city to relocate its U.S. headquarters and innovative manufacturing operations. Founded would be the best fit for the in 2011 in Rockville, Maryland, the company manufactures unique, advanced multispectral future of our business. camouflage systems and patented nano- — Brandon Cates, CEO, Ametrine ” headquarters almost a year ago and came to the conclusion that Round Rock would be the best fit for the future of our business,” said Brandon Cates, Ametrine’s CEO. “Round Rock has been very forward-thinking when it comes to supporting the defense industry, and we anticipate future collaboration with the city, the chamber and the other innovative companies that Round Rock attracts.” After exploring several locations, Californiabased Amazing Magnets also announced in January plans to move its headquarters, design and manufacturing operations to Round Rock, citing the city’s entrepreneurial spirit, access to worldclass talent and aff ordable cost of living as key decision factors. It joins Saleen Performance This Investment Parts, which relocated from California and Profile was plans to hire 150 employees in Round Rock. prepared under Both companies are among the hundreds of the auspices other California businesses choosing to move of the Round to the Lone Star State. Rock Chamber. “After visiting Round Rock and witnessing its For more economic growth, diversifi cation and meeting information call its people, we felt like we had found our home 512-255-5805 or away from home. Everyone was so welcoming, email jrobinson@ kind and supportive,” said Amazing Magnets roundrock founder and CEO Tim Boettcher chamber.org.

TEXAS ECONOMIC DEVELOPMENT GUIDE 101 REGION PROFILE — ALAMO The Alamo, San Antonio Photo: Getty Images CONSIDER THE ALAMO

2020 SAN ANTONIO, NEW BRAUNFELS’ TOP PROJECT SECTORS

SECTOR PROJECTS MACHINERY, EQUIP. & CONST. 12 BUSINESS & FINANCIAL SERVICES 8 FOOD & BEVERAGE 7 TRANSPORT & LOGISTICS 7 IT & COMM. 6 by SAVANNAH KING Source: Conway Data

he Alamo, made famous million people. San Antonio- New cyber warfare operations. The in 1836 for its part in the Braunfels MSA is home to 89% of city is home to the most certified Texas Revolution, is a the region’s population. cyber professionals outside of central part of the Lone Star With 30 universities and Washington D.C. and has the No. State’s history. Every year, community colleges in the region, 1 ranked cybersecurity university tourists stroll through the employers and employees alike program at the University of Spanish mission-turned-fortress to have easy access to a variety Texas -San Antonio. Several Tbetter appreciate the unique spirit of educational programs and large corporations also operate of liberty found in Texas. training options. A cluster of cybersecurity operations in San Named for its most important three military bases support Antonio including USAA and historical site, the Alamo Region the region’s growing defense Lockheed Martin. is still a pivotal piece of the sectors, as well as the health Additionally, national and state’s story. The 19-county region care, biomedical and life international companies like covers about 18,000 square miles science sectors. Tyson Foods, Toyota and Valero in central Texas and includes San Antonio’s strong Energy have continued to expand the cities of San Antonio - New cybersecurity ecosystem is their operations in the regions. Braunfels and Victoria, which anchored by the presence of Recently, Amazon announced are major population centers and several military instillations plans to open two new fulfilment economic drivers for the region. including the Texas branch of the centers and a new delivery station The region is home to a diverse National Security Agency, the FBI in San Antonio, creating between population of approximately 2.9 Cyber Division, the Air Force’s 1,500 new full-time jobs.

102 TEXAS ECONOMIC DEVELOPMENT GUIDE

REGION PROFILE — SOUTH

A PORT, A BORDER AND A COAST: SOUTH TEXAS HAS IT ALL

by RON STARNER

verything from a relaxing people, or roughly 8.4% of the form a major part of the regional beach vacation to a state’s population. Two large economy, as do trade and other shopping excursion to metropolitan areas anchor the cross-border activity between Mexico can be enjoyed from regional economy: Corpus Christi South Texas and Northern Mexico. the South Texas region and Laredo. Two smaller metros The dominant industries in that spans 37,800 square — Brownsville-Harlingen and the region include leather and miles and stretches from the McAllen-Edinburg-Mission — also allied product manufacturing; EMexican border up the Gulf Coast play a sizable role in the cross- mining; petroleum and coal to some of the most important border economy. products manufacturing; fishing, North American ports near South Texas is notable for its hunting and trapping; pipeline Corpus Christi. coastal and border characteristics. transportation; law enforcement; Covering 28 counties, South Tourism, hunting, fishing and transportation services; health Texas is home to 2.4 million other outdoor leisure activities care; oil and gas extraction; and

Port of Corpus Christi Photo: Getty Images

104 TEXAS ECONOMIC DEVELOPMENT GUIDE museums and historical sites. in the region, serving 12,000 2020 LAREDO’S TOP PROJECT SECTORS In 2020, the region benefited students, while another campus from several significant capital of Texas A&M in Laredo educates SECTOR PROJECTS investments. The largest of these 7,500 students. was a $48 million investment by The region continues to TRANSPORT & LOGISTICS 5 Mission Produce in Webb County, experience robust growth. Its FOOD & BEVERAGE 4 creating 75 jobs. Other notable population has risen by 7.4% BUSINESS & FINANCIAL SERVICES 2 deals included a $12 million (about 169,000 residents) since investment by Sicar Farms in 2010. The Port of Corpus Christi, Source: Conway Data Hidalgo County, creating 250 jobs; meanwhile, was recently ranked and a $7.5 million investment by by Site Selection magazine as JM Steel Corp. in San Patricio the No. 1 Free Trade Zone in the County, generating 50 jobs. country. The port is also the No. 1 Texas A&M University-Corpus port in Texas for generating new Christi is the largest 4-year school industry and new jobs. REGION PROFILE — WEST TEXAS

THERE’S BLACK GOLD IN THEM THAR HILLS

by RON STARNER

Downtown Midland Texas Photo: Getty Images

106 TEXAS ECONOMIC DEVELOPMENT GUIDE hen it comes to In 2020, the region landed 2020 ODESSA’S TOP PROJECT SECTORS minerals gleaned a series of high-profile capital from the earth, investments. The largest SECTOR PROJECTS there is perhaps was a $5 million deal by MACHINERY, EQUIP. & CONST. 5 no place in ONCOR Electric Delivery America more Holdings Company in Stanton ELECTRONICS 1 important to the national in Martin County. Other BUSINESS & FINANCIAL SERVICES 1 Wand global economy than notable projects included a West Texas. $4.5 million investment by Home to the Permian Purvis Industries in Odessa in

Basin, West Texas contains Ector County and a $3 million 2020 MIDLAND’S TOP PROJECT SECTORS the Mid-Continent Oil Field deal by Endeavor Energy province and serves as one Resources in Midland. SECTOR PROJECTS Odessa College, Midland of the largest sources of oil ENERGY 3 and natural gas in the world. College and the University As a result, the economies of Texas Permian Basin MACHINERY, EQUIP. & CONST. 1 of Midland and Odessa tend educate thousands of workers AEROSPACE 1 to reflect the boom-and-bust every year throughout the IT & COMM. 1 region, as does a network of nature of the oil business. LIFE SCIENCES 1 West Texas is a 30-county community colleges. region that stretches from the Interstate 20 and Texas Source: Conway Data towns of Mason and Brady State Highway 191 form the in the east to the Rio Grande main thoroughfares through just south of Dryden and just the region and connect north of Seminole. The three West Texas to key markets main metro areas of West in Texas, New Mexico Texas are Midland, Odessa and beyond. and San Angelo. Two major east-west Total population of West railroads connect the region Texas in 2019 was 660,000, to Mexico, Dallas-Fort accounting for 2.3% of the Worth, Houston, El Paso and state’s population. Since 2010, other key markets in two the region has experienced a countries. 16% increase in population. Approximately 52% of the region’s full-time residents live in either Midland or Odessa. Major industries in West Texas has the 40,000-square-mile area are mining; oil and gas extraction; pipeline grown by 15.8% transportation; heavy and civil engineering since 2010, adding construction; support activities for mining; rental and leasing services; truck 90,000 people. transportation; gas stations; fishing, hunting and trapping; Source: Texas Comptroller and lessors of non-financial intangible assets.

TEXAS ECONOMIC DEVELOPMENT GUIDE 107 REGION PROFILE — UPPER RIO GRANDE

TWO STATES, TWO COUNTRIES MEET IN EL PASO

by RON STARNER

About 97% of the people of the Upper Rio Grande Region live in El Paso County.

Source: Texas Comptroller

Photo: Getty Images

108 TEXAS ECONOMIC DEVELOPMENT GUIDE here is perhaps no more 950 people in El Paso; and 2020 EL PASO’S TOP PROJECT SECTORS scenic place in Texas Marmaxx Operating Corp. than the majestic Upper announced a $90 million SECTOR PROJECTS Rio Grande Region. investment to build office and TRANSPORT & LOGISTICS 4 Covering 21,700 square distribution space and hire BUSINESS & FINANCIAL SERVICES 3 miles and stretching 950 people in the area. from the Mexico border and The University of Texas LIFE SCIENCES 3 theT New Mexico state line at El Paso (UTEP) is the MACHINERY, EQUIP. & CONST. 3 along the Rio Grande past Big largest college in the IT & COMM. 1 Bend and around the area region and educates more CHEMICALS & PLASTICS 1 of the Guadalupe Mountains than 25,000 students each National Park, this region year. The National Science CONSUMER PRODUCTS 1 Foundation has designated has captivated the American Source: Conway Data imagination for centuries. UTEP as a Model Institution Six counties form the foundation of this region, with the El Paso MSA serving as the dominant metro area. In 2019, about 865,000 people called the Upper Rio Grande Region home. This represents an increase of 40,000 people (5%) since the 2010 census. Major industries in the region include leather and allied product manufacturing; apparel manufacturing; law enforcement; truck transportation; petroleum and coal products manufacturing; museums and historical sites; administration of housing programs, urban planning and community development; heavy and civil engineering Guadalupe Mountains National Park construction; primary metal for Excellence, one of just Courtesy of Travel Texas manufacturing; and rental six schools in the nation and leasing services. to receive that honor. In 2020, Greater El Paso UTEP is also one of only 11 landed 11 corporate facility universities in America to expansion projects. The receive a $5 million Teachers biggest deal came from for a New Era (TNE) research Amazon, which announced grant from the Carnegie Corp. a $191.7 million capital El Paso is served by investment to build a Interstates 10 and 110, as distribution warehouse well as four U.S. highways and hire 700 workers in El — 54, 62, 85 and 180. BNSF Paso. The TJX Companies, Railway Co. and Union Pacific meanwhile, announced a Railroad Co. serve as the $150 million investment to dominant rail carriers in build a warehouse and hire the region.

TEXAS ECONOMIC DEVELOPMENT GUIDE 109 SPORTS & RECREATION

by RON STARNER

Making the Impossible

Toyota StatiumPOSSI in Frisco, home to FC Dallas BLE

110 TEXAS ECONOMIC DEVELOPMENT GUIDE Bears and Rangers prove it can happen in Texas.

by RON STARNER

n April 5, 2021, the sports world was treated to two remarkable sights, courtesy of the state of Texas. First, the Texas Rangers opened the 2021 Major League Baseball season to a packed house at new Globe Life Field in Arlington — the first sold-out major sportsO event in the country since the advent of the global pandemic in March of 2020. Secondly, the Baylor Bears stunned the sports world by upsetting and demolishing the previously undefeated and heavily favored Gonzaga Bulldogs in the National Championship Game of the NCAA Men’s Final Four in Indianapolis later that evening. Just a little over a year ago, both occurrences seemed highly unlikely. America, like the rest of the world, was struggling to gain control over the spread of the deadly coronavirus, prompting shutdown orders nationwide that left sporting venues silent POSSI BLE and vacant.

TEXAS ECONOMIC DEVELOPMENT GUIDE 111 Globe Life Field, home of the Texas Rangers, in Arlington

Meanwhile, new head double zeros, capping basketball coach Scott Drew a lopsided win over the was still building a program No. 1-ranked Zags. that had been moth-balled To understand how these just a handful of years unlikely events could happen, ago. The experts predicted you must know the psyche that Baylor would field a of Texas. Ingrained into competitive squad in the the DNA of Texans is an 2020-2021 college basketball unmatched desire to excel season, but no one knew and be the best at anything. whether a complete season From football and soccer to was even possible, given the hockey and golf and virtually circumstances surrounding every other sport, Texans COVID-19 and its effect on take great pride in being various teams. And certainly the best and in winning no one was forecasting that championships — both on the Drew and his players would field and off. be cutting down the nets in That is why the legacy of Indy come April 5. Texas is replete with some Yet, both things happened. of the most hallowed names Some 32,238 fans entered in sport: Roger Staubach, the turnstiles at Globe Life Emmitt Smith, Tony Field to cheer on the Rangers Dorsett, Troy Aikman, David and usher in a season of MLB Robinson, Tim Duncan, Nolan in Texas. A few hours later, Ryan, Kevin Durant, Sheryl Baylor players, coaches and Swoopes, Babe Didrikson fans alike celebrated wildly Zaharias, Ben Hogan, Doak as the clock ticked down to Walker, Ernie Banks, George

112 TEXAS ECONOMIC DEVELOPMENT GUIDE SOME 32,238 fans entered the turnstiles at GLOBE LIFE FIELD TO CHEER ON THE RANGERS and usher in a season of MLB in Texas.

Foreman, Mean Joe Greene, other teams. MLB fans can Tom Landry, A.J. Foyt, Lee choose between the Houston Trevino, Mia Hamm. These Astros and Texas Rangers. are just a handful of the Hockey lovers put on their legends who once roamed sweaters to bang the glass the fields, courts and for the Dallas Stars. NBA racetracks of Texas. arenas in San Antonio, Today, hundreds of stellar Houston and Dallas cater to athletes carry on their legacy fans of the Spurs, Rockets and at venues in places like Mavericks. Frisco, Arlington, Houston, On top of that, recreational Sugarland, Corpus Christi, enthusiasts travel to the Dallas, Fort Worth, College state each year to engage in Station, Lubbock, Austin, El hunting, fishing, backpacking, Paso, San Antonio and plenty camping, boating, snorkeling, of other cities throughout the beachcombing, surfing, Lone Star State. sailing, skiing, bike riding, Soccer lovers fill stadiums running, hiking, rock climbing in Frisco and Houston to and plenty of other pastimes. cheer on FC Dallas and the The common denominator Houston Dynamo of Major in all these pursuits is a state League Soccer, and they will that drives people toward soon be flocking to a new excellence and having more stadium in Austin. Football than a little fun in the fans fill college stadiums process. What happened on as well as giant venues in April 5 — in two cities — Houston and Arlington to root was but the latest evidence for the Texans, Cowboys and of that.

TEXAS ECONOMIC DEVELOPMENT GUIDE 113 QUALITY OF LIFE

Gone to Texas

View from Enchanted Rock, Fredricksburg Photo by Heather Overman ompanies aren’t the only ones packing up shop and moving to Texas. In recent years, people from all over the globe are moving to Texas. In 2019, Texas ranked No. 2 in the nation for relocation activity, 7 Reasons to Move to according to the 2021 edition of the Texas CRelocation Report released by Texas Realtors. The report analyzes the latest migration data the Lone Star State from the U.S. Census Bureau and U-Haul. According to the census estimates, Texas welcomed 537,000 — 582,000 new residents in 2019. This is the seventh year in a row by SAVANNAH KING that Texas attracted more than 500,000 new residents from out of state. The census also estimated 435,000 — 471,000 Texans moved to other states, yielding a net gain of approximately 100,000 people. Most of those new Texans relocated from California and

114 TEXAS ECONOMIC DEVELOPMENT GUIDE Florida, respectively. Other about double the number ABOVE LEFT: top states for people moving of Californians moved to Dixie Dude Cattle Ranch, Bandera, Texas to Texas included Louisiana, Texas compared to Texans’ Photo by Carmyn Rio Illinois, Oklahoma, New migration to California. TOP: Mexico, Georgia and Arizona. Lake Marble Falls reservoir on the Colorado River, Texas Hill Country Additionally, Texas welcomed Here are seven reasons Photo by Heather Overman approximately 192,000 — to make the move to 222,000 new residents from Texas this year: ABOVE: outside the country in 2019. Texas state flower, the Bluebonnet Photo by Heather Overman Interestingly, California Economic opportunity: ranked first in the United Texas rang in the 2021 New States for the number of Year by becoming the world’s residents moving out of ninth-largest economy. It also state in 2019, with Texas recently celebrated its ninth coming in second. The consecutive year winning Site most popular out-of-state Selection’s Governor’s Cup relocation destinations for award — a clear indication of people moving out of Texas the state’s ability to attract included California, Colorado, businesses and opportunity Oklahoma, Florida and for its residents. Georgia. While California was the top state new Affordability: Texans moved from, and Texas offers an affordable existing Texans moved to, cost of living. According to

TEXAS ECONOMIC DEVELOPMENT GUIDE 115 TOP: Best Places, Texas boasts a ones benefiting from the Lone Mural in Austin cost of living index of 93.9, Star State’s low taxes and Photo by Carmyn Rio compared to the U.S. average affordability. Not only are ABOVE: of 100. According to Zillow, there no corporate income The Percy V. Pennybacker Jr. Bridge, Austin homes are more affordable in taxes, but Texans also enjoy Photo by Shay La’Vee Texas than states along the having no personal income ABOVE RIGHT: east and west coasts, with tax and keeping more money Cattle grazing in the Hill Country an average home value of in their wallets. Photo by Heather Overman $228,255. High-quality education: No income tax: From top-ranked universities, Businesses aren’t the only innovative community and

116 TEXAS ECONOMIC DEVELOPMENT GUIDE

TOP: technical colleges and Blue- Texas is home to several Padre Island, Corpus Christi Ribbon K-12 systems, Texas professional sports teams, Photo by Heather Overman offers a robust range of including the Dallas ABOVE: educational resources. Cowboys, Houston Texans Bullock Texas State History Museum, Austin (NFL), Texas Rangers, Photo by Heather Overman Culture and community: Houston Astros (MLB), Dallas ABOVE RIGHT: From vibrant arts Mavericks, San Antonio Texas Capitol, Austin and tantalizing Tex-Mex, Spurs, Houston Rockets Photo: Getty Images the Lone Star State offers a (NBA), Dallas Stars (NHL), unique way of life. According FC Dallas and the Houston to Wallethub, Texas is the Dynamos (MLS). No. 2 most diverse state in the nation. Across the state, Outdoor amenities: various unique community Home to two national parks: events and festivals celebrate Guadalupe Mountains — everything from music and the world’s most extensive culture to business and Permian fossil reef — and Big innovation. Bend in West Texas, the state boasts stunning scenery and Sports: unique natural amenities. Texans take their sports Texas also boasts 90 state seriously and are proud parks, 191,000 miles of rivers to support their favorite and streams, 624 miles of high school, college or coastline and more than 70 professional sports teams. working ranches.

118 TEXAS ECONOMIC DEVELOPMENT GUIDE ABOVE: The Alamo, San Antonio Photo by Carmyn Rio

LEFT: Paddleboarders on the Colorado River, Austin Photo by Carmyn Rio

TEXAS ECONOMIC DEVELOPMENT GUIDE 119 TOP: The USS Lexington aircraft carrier museum, Corpus Christi Photo by Shay La’Vee

ABOVE: 30-foot tall Eye sculpture, Dallas Photo by Carmyn Rio

RIGHT: Tejas Rodeo Company, Bulverde Photo by Shay La’Vee

120 TEXAS ECONOMIC DEVELOPMENT GUIDE

ABOVE: Austin building art Photo by Carmyn Rio

FACING PAGE TOP: Downtown Houston skyway Photo: Getty Images

FACING PAGE BOTTOM: Lake Ray Hubbard Lighthouse, Rockwall Photo by Heather Overman

122 TEXAS ECONOMIC DEVELOPMENT GUIDE TEXAS ECONOMIC DEVELOPMENT GUIDE 123 TOP: The San Antonio Riverwalk Photo by Carmyn Rio

ABOVE: Corpus Christi Marina Photo: Getty Images

LEFT: Willie Neslon wall art, Austin Photo by Carmyn Rio

124 TEXAS ECONOMIC DEVELOPMENT GUIDE TOP: Wagon Wheel Ranch, Lometa, Texas Photo by Shay La’Vee

ABOVE: River activities, Austin Photo by Heather Overman

LEFT: Chapman Ranch windfarm, Nueces County Photo by Shay La’Vee

TEXAS ECONOMIC DEVELOPMENT GUIDE 125 TOP: Darrell K. Royal – Texas Memorial Stadium, Austin Photo: Getty Images

ABOVE: Bob Hall Pier, Padre Island, Corpus Christi Photo by Heather Overman

RIGHT: Longhorns, Twin Creek Ranch, Willis, Texas Photo by Heather Overman

126 TEXAS ECONOMIC DEVELOPMENT GUIDE

INDEX TO ADVERTISERS

Advertiser Page Advertiser Page Amarillo Economic Development Corporation ...... 79, 117 Mansfi eld Economic Development Corporation ...... 67 www.takerootinamarillo.com www.mansfi eld-texas.com Austin Chamber of Commerce ...... 99 McAllen Economic Development Corp...... gatefold between 64-65 www.opportunityaustin.com www.mcallenedc.org Cedar Hill Economic Development Corporation ...... 7 McAllen International Airport ...... gatefold between 64-65 www.cedarhilledc.com/highpoint67 www.mcallenairport.com Cedar Park Economic Development ...... 41 McAllen-Hidalgo International Bridge / www.cedarparktexasedc.com Anzalduas International Bridge ...... gatefold between 64-65 Celina Economic Development Corporation ...... 36 www.mcallen.net/departments/bridge www.celinaedc.com McKinney Economic Development Corporation ...... IFC gatefold, 1 City of Balch Springs Economic Development Corporation ...... 87 https://uniquemckinney.com www.cityofbalchsprings.com Odessa Development Corporation ...... 8 City of Converse Economic Development Corporation ...... 103 www.odessatex.com www.chooseconverse.com Oncor Electric Delivery, LLC ...... 55 City of Dallas Offi ce of Economic Development ...... 9 www.oncor.com www.dallasecodev.org Pasadena Economic Development Corporation ...... 93 City of El Paso/El Paso International Airport ...... 95 www.pasadenaedc.com www.fl yelp.com Pearland Economic Development Corporation...... 121 City of McAllen ...... gatefold between 64-65 www.pearlandedc.com www.mcallenmeansbusiness.com Pfl ugerville Community Development Corporation ...... 19 City of Mesquite ...... 43 www.pfdevelopment.com https://mesquiteecodev.com Port Freeport – FTZ #149 Freeport ...... 61 City of Sugar Land Economic Development ...... 73 www.portfreeport.com www.sugarlandecodev.com Richardson Economic Development Partnership ...... 37 City of Waxahachie ...... 11 www.richardsoniq.com www.crossroadsoftx.com Round Rock Chamber of Commerce / Conroe Economic Development Council ...... 35 Economic Development Partners ...... 100-101 www.conroeedc.org https://roundrockchamber.org Coppell Economic Development Corporation ...... 29 San Antonio Economic Development Foundation ...... 3 www.coppelltx.gov www.sanantonioedf.com Denton Economic Development Partnership / San Patricio Economic Development Corporation ...... 13 Denton Chamber of Commerce ...... 23 https://sanpatricioedc.com www.dentonedp.com Terrell Economic Development Corporation ...... 46-49 DeSoto Economic Development Corporation ...... 25 www.terrelltexas.com www.dedc.org Texas Economic Development Corporation ...... BC Development Corporation of Abilene ...... 68-69 www.GoBigInTexas.com www.developabilene.com Texas State Technical College ...... 17 Edinburg Economic Development Corporation ...... 105 www.tstc.edu https://cityofedinburg.com/economic_development/index.php The Alliance – The Economic Development Alliance Entergy Texas ...... 57 Brazoria County ...... 15 www.goentergy.com/texas www.eda-bc.com Forney Economic Development Corporation ...... 51 The Colony Economic Development Corporation ...... 45 www.forneytexasedc.org www.thecolonyedc.org Greater San Marcos Partnership ...... postcard between 16-17 Tomball Economic Development Corporation ...... 5 www.texasinnovationcorridor.com www.tomballtxedc.org Greenville Economic Development ...... 21 Texas Offi ce of the Governor Economic Development & Tourism . . . BC https://greenvilletxedc.com www.gov.texas.gov/business Ingleside Chamber of Commerce ...... IBC Uvalde Area Development Foundation ...... 27, 119 www.inglesidetxchamber.com www.uvaldeeconomicdevelopment.com Irving-Las Colinas Chamber of Commerce ...... insert between 32-33 www.irvingchamber.com

128 TEXAS ECONOMIC DEVELOPMENT GUIDE