WHY TEXAS? AUSTIN COMMERCE The Plus Side of a Pandemic Texas metros like Austin have long been attractive to businesses stuck in higher-cost areas of the country. Today, COVID-related pressures may actually be making Austin even more appealing to businesses—particularly those in the growing tech sector. As 2020 wound down, the “With the continued success We have found that attracting The company’s goal is to allow Austin region’s large economic of this work, we will see more talent here has been easy,” control of satellites with a base was poised to grow in locally grown businesses Feigley says. “We have been handheld device like a phone. the new year. Some of that taking the leap to expand one of the fastest-growing expansion will come from and hit the $1 billion cap,” offices in the company, having Hypergiant Galactic Systems is business relocations—including she says. “This will enable started with roughly 25 people working with the US Air Force many technology companies— job growth and bring in in July ’18. Our plan is to on building the Chameleon as COVID-19 made CEOs executive-level talent who are expand further in 2021.” Constellation, a planned outside Texas rethink the experts in company pivots.” system of roughly 36 satellites geographic Technology is also creating that can be reconfigured in areas where their AUSTIN opportunities at Cedar Park’s real time through software companies operate. TECHNOLOGISTS Firefly Aerospace, a supplier updates. The project has LEAD THE WAY of launch vehicles, spacecraft, $100,000 in funding from the “From a business COVID is creating opportunities and in-space services. The Air Force’s Small Business development for many Austin tech shops. 300-employee firm moved Innovation Research grant here from California in 2014. We’re seeing standpoint, we have For instance, some now program, or SBIR, with the 196 active projects help the healthcare industry aim of landing another grant a lot of interest in our pipeline,” said understand their data and “The next of up to $10 million, according in nearshoring Adriana Cruz, how to use it to reduce generation of to the Wall Street Journal.1 and reshoring. Executive Director the disease’s spread. the information of the Economic revolution is In a similar vein, Switzerland’s —Adriana Cruz “As the medical and banking Development and space,” says Acutronic Holding AG turns industries turn more to tech Tourism division in the office Eric Salwan, to partners in the defense during COVID, there will be an of Governor Greg Abbott, Firefly’s Director of Commercial sector to help fund its increase in the conversation speaking at the YTexas State Business Development. research and development. of how [tech] plays a role in of Business Summit. “We’re “Everything you’ve seen with A maker of technologies in those fields,” Gunst says. seeing a lot of interest in the Internet over the last areas like motion simulation 20 years, that’s what we’re nearshoring and reshoring.” PIMCO, a global investment and robotics, the company’s going to see with space manager that employs more turbines and actuators over the next 20 years.” Cruz says that more prospects than 250 people in Austin, business is based in Austin. have reached out to her adapted its internal and client agency since the pandemic communication during the CONTROLLING A “In our began. “There is a lot of pandemic by increasing its SATELLITE WITH experience, the interest in medical device use of technologies like video A PHONE government manufacturing, personal- conferencing, according to Pat The large software is one of the protection equipment Feigley, a Managing Director. development industry in best sources manufacturers coming metro Austin is helping of funding,” to the state. In the past Since the California-based fuel growth at Hypergiant says Acutronic’s CEO, they automatically would firm opened its local shop Galactic Systems, which Florian Aigrain. “We’re have gravitated to the in the summer of 2018, its builds and deploys artificial doing first-in-the-nation type East or West Coasts.” area technology team has led intelligence–powered satellites stuff.” Acutronic is turning the charge with automation into low-Earth orbit. hobby-grade turbojet engines The region’s tech of all types, including into systems that can run industry will benefit data processing, artificial It operates the craft with unmanned aerial systems, from a growing intelligence, and creating a combination of industry- urban air mobility craft, or focus on mergers faster, more efficient ways standard flight control even small missiles, he says. and acquisitions of doing most everything. software and its own product, Austin is also home to one and initial public called Hyper Intelligent Vehicle Enhancement, offerings, according “The business community 1Sara Castellanos, “Air Force Readies to Amber Gunst, CEO has greeted us with open or HIVE for short, which Launch of In-Orbit Network to Support of the Austin Technology arms and our employees helps with functions like AI Applications in Space,” Wall Street Council, a trade group. have really enjoyed the city. predictive maintenance. Journal, July 30, 2020. 14 Texas CEO Magazine Q1 2021 WHY TEXAS? of three Innovation Hubs for for a broad range of jobs Silicon Valley to Cedar Park in AFWERX, where the US Air focused on modernization 2009, he got an unexpected Force and Space Force work through innovation. benefit beyond lower costs with military folks, academics, and less regulation. “When we and entrepreneurs. The Command’s presence became a Texas company, in Austin has also led to about 30 percent of our “The Air the establishment and business became the oil and Force has a growth of related jobs in the gas industry,” Trevis says. “We checkbook they region, leveraging Austin’s had 12 different customer can use for entrepreneurial ecosystem segments, but we had never innovation,” says in its strategy for success, been in that market.” Tony Cucolo, a according to Ellen Troxclair, retired US Army the AFC’s Director for Steve Raucher Major General who now runs Strategic Partnerships. found similar the Austin nonprofit National growth after Security Innovation Council, “We’ve invested $157 million moving his which helps connect people so far in strategic partnerships technology in national security with folks with higher education, including company, who can solve technological the University of Texas, RapidDeploy, problems. “They’ve broken Texas A&M, Rice University, to the area from South the code on that and are and Baylor,” she said. Africa in January 2019. The doing very well.” He adds company makes software that SBIR grants, like the A BRIGHT FUTURE, that helps cut response one secured by Hypergiant DESPITE COVID times for emergency services like police, firefighting, and Galactic Systems, can be CONCERNS attractive sources of funding. ambulances. “We now employ What about 80 people in the US, including the non-tech 70 in Austin,” he says. ARMY INNOVATION businesses that NEAR SIXTH STREET are also such a AFWERX Austin is located critical part of downtown in Capital Factory, Austin, including a startup accelerator, along festivals, live music, and with working space for the travel? Jacqueline Yaft, Army Futures Command, Executive Director of Austin- or AFC, which was created Bergstrom International in July 2018 to modernize Airport, is optimistic, but also that military branch. acknowledges that things will be different post-COVID. “Standing up an additional “The profile of business Army Command travelers and first class [flights] hasn’t been is going to change for airlines, done since as will the infrastructure of 1973,” says airport lounges,” she says. Command Sergeant Major Michael Similar modifications are Crosby. likely in store for the many events Austin hosts. “The Though its headquarters are entertainment and music within walking distance of festivals will come back,” Austin’s famed Sixth Street says Yaft. “They might have entertainment district, the a different way of holding AFC has nearly 26,000 Army them and a different way scientists and engineers of handling the passengers spread out across 26 and customers.” states, 11 countries, and five continents, Crosby While COVID may bring shifts said at the Summit. in many areas of society, other CEOs also remain optimistic The AFC is working on about the long-term prospects machine learning that can of doing business in the state. discern friendly vehicles Whether they’ve come recently from foes and robotics to or a decade ago, businesses breach obstacles surrounded seem uniformly pleased with by barbed wire and mines. what Austin has to offer. And like Hypergiant Galactic Systems, the AFC is building When Ed AI systems that can tell Trevis moved people when vehicles his industrial- need maintenance. computing The AFC is actively business, recruiting forward-thinkers Corvalent, from TexasCEOMagazine.com 15 WHY TEXAS? AUSTIN COMMUNITY A Helping Accelerating Hand for the Change in Higher Ed Unemployed Since March of 2020, COVID-19 is pushing Austin’s colleges and universities to countless jobs have been offer more virtual classes, even as they adopt flexible training lost across the state of programs and coursework in entrepreneurship. Texas. Fortunately, there’s been no shortage of Change brings opportunity, Despite the Austin region’s offers dual credit for high programs designed to help but seldom of the scope or wealth of colleges and schoolers and programs to get speed that COVID-19 has universities that focus students ready for higher ed. the newly unemployed created. That’s true across a on science, technology, upskill for new opportunities. wide swath of Austin’s higher- engineering, and math “We believe college is education and workforce- education, its tech employers for everyone,” says Dr. One is the Pflugerville development institutions.