Texas Business Bulletin | August 2020

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Dear Texas Economic Development Stakeholders,

Although we realize these continue to be difficult times for all Texans, the Governor’s Economic Development & Tourism (EDT) Office remains optimistic for the future. As we focus on COVID-19 recovery, we continue to work on revitalizing the Texas economy through the attraction of new jobs and investment to the state, as well as the expansion of our existing firms. New corporate investment brings much needed jobs and capital expenditures to Texas communities, helping to spur further economic activity. Recent major announcements from some of the nation’s largest corporations, such as Tesla and Amazon, show that businesses are still expanding and planning for future growth—with Texas in mind. We know that the Texas economy will continue to recover, and again be the largest economic powerhouse in the nation. In fact, just a few days ago Texas was recognized for having the #1 Best Business Climate in the country by Business Facilities Magazine—a testament to Governor Abbott’s commitment for Texas to continue to be the best state for business.

We recognize that COVID-19 has changed many things in our lives, including how we interact with each other and the way we do business. Although we’re still not able to physically be together at EDT, we continue to work closely to help guide our state’s businesses and community partners through these challenging times. We’re all in this together, even though we’re apart!

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Pictured: EDT staff members during a recent monthly staff meeting.

We hope you will continue to check our website and connect with us on social media for news and updates. From all of us at EDT, we thank you for your resilience and for everything you do to continue to make Texas the best place to live, work and visit!

-Governor's Economic Development & Tourism Office #TexasBizStrong


Staff Spotlight: Marketing

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Marketing coordinates the Business & Community Development communication and outreach efforts. The team manages the office’s engagement channels, produces promotional content and works to enhance the state’s visibility as the premier place for business. Marketing designs and creates content for a variety of collateral materials, such as infographics, industry reports, and sector snapshots, and makes it available to all Texas economic development stakeholders through the office's website, e-newsletters and social media channels. The team supports the Small Business Assistance Office through promotion and creative design for the Governor’s Small Business Events, and more recently, the Governor’s Small Business Webinar Series. In response to the COVID-19 crisisMarketing has focused its efforts to ensure the timely and accurate dissemination of COVID-19 recovery resource information and related communications.


Texas Trade Update

Export

It’s no secret that the COVID-19 pandemic has had a colossal impact on global trade. The pandemic’s devastating effect on global supply chains has not only disrupted normal trade activity for Texas, but for the entire U.S. and countries around the world. According to the World Trade Organization, it is estimated that global trade will fall between 13% and 32% in 2020 (source). Texas leads the U.S. in trade activity as the top exporting state—now for the last 18 years—but COVID-19 related shutdowns and the closure of supply resources across North America has affected Texas’ ability to bring in much needed supply chain components. Data from the U.S. Census Bureau shows that Texas exports have decreased 12.6% this year, compared to last year. However, as suppliers begin to reopen and manufacturers regain operations, Texas exports will start to recover.

As Texas copes with COVID-19 challenges today, we are also able to look towards the future and the next chapter of North American trade. On July 1, 2020, the United States Mexico Canada Agreement (USMCA) officially went into effect. This new trade agreement will allow Texas increased access to trade with Mexico and Canada, the state’s first and second largest export partners. USMCA will also allow for greater foreign direct investment from Mexican and Canadian firms through expanded collaboration and efficiencies between the international markets. Trade officials say that USMCA is already assisting border industries recover from the pandemic, as it begins to bring in jobs and investment (source).

Another recent win for Texas is the federal approval authorizing the use of rail to ship liquefied natural gas (LNG) (source). Texas is the largest producer of LNG in the country, and energy companies are already eyeing the opportunity for this new approval to expedite LNG exports to Mexico. There’s also good news for trade-related jobs in Texas. The Lone Star State leads the nation in jobs supported by exports—nearly 1 million in 2019—and although all major industries saw job loss in April, data shows that the Trade, Transportation, and Utilities sector is on the rebound, adding record-setting job numbers in June (source).


Upcoming Survey: Let Your Voice Be Heard!

EDT will be administering a statewide survey in order to get a better understanding of the current Foreign Direct Investment (FDI) landscape in Texas and determine how to best provide resources to Texas communities during these times. Keep an eye out for this survey link in the coming weeks and thanks in advance for your participation!


Recent Project Announcements

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Tesla in Travis County: Tesla announced that its new Gigafactory is set to be located in eastern Travis County. The facility will be one of the world’s largest and most advanced automotive plants and will bring an estimated $1 billion in capital investment and 5,000 new jobs to the region.

CoffeeTech in Seguin: CoffeeTech Industries announced it will invest at least $56 million to build a new state-of-the-art headquarters and manufacturing facility in Seguin. The project is expected to create at least 91 new jobs.

Mastronardi Produce in Laredo: Mastronardi Produce announced plans for a new refrigerated storage facility in Laredo, a project that is expected to create 140 new jobs and $5 million in capital investment.

Cisco Equipment in Seguin: Cisco Equipment it is expanding its presence in South Texas with the opening of a facility in Seguin. The new location includes a state-of-the-art maintenance facility, shop and floor space on 10 acres of land.

Diversified CPC in Beaumont: Diversified CPC International, a manufacturer of aerosol and refrigerant, announced plans for a new manufacturing and distribution facility in Beaumont, which is expected to create more than 30 new jobs.

Wet Sounds in Rosenberg: Marine audio systems company, Wet Sounds, announced plans to build a new warehouse, fabrication and office facility in Rosenberg. The project is expected to create up to 50 high-paying jobs.

Amazon in Pflugerville and El Paso: Amazon announced plans to open a new fulfillment center in Pflugerville, a project that is expected to bring about 1,000 full-time jobs to the area. Amazon also announced plans to open its first fulfillment center in El Paso, which is expected to create over 700 new, full-time jobs.  

Investex II in Round Rock: Investex II announced it will build a cold storage and manufacturing facility in Round Rock. The project is expected to create $14 million in capital investment and 60 new jobs.


State Agency Partner Spotlight: Texas Department of Agriculture

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The Texas Department of Agriculture (TDA) works to regulate, serve and promote the Texas agriculture industry while also protecting consumers. Among many other services, TDA assists with economic development in Texas by providing tools for rural communities to attract businesses, offering infrastructure grants to qualifying communities, and helping Texas companies promote their products through the GO TEXAN marketing program. TDA and EDT work together to help provide resources and assistance to agricultural and rural businesses throughout Texas. 

During the COVID-19 crisis, TDA has continued to carry out their important mission and has taken action to help protect agricultural and rural businesses. TDA also launched a Direct From Texas online initiative to help Texas agricultural businesses sell directly to consumers. For more information on TDA's resources and response to COVID-19, visit their webpage here.


In the News

Texas dominates Business Facilities' 16th Annual State and Metro Rankings Report

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Texas dominated the Business Facilities 2020 Annual State and Metro Rankings Report, receiving the high honor of Best Business Climate in America. Texas received #1 rankings in three other state categories, including #1 for Installed Wind Power Capacity, Exports and FDI Investment. For more information, find Governor Greg Abbott's statement here and read the full rankings report here.

Texas A&M University System receives federal contract for COVID-19 vaccine manufacturing

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The U.S. government is paying $265 million to the Texas A&M University System and its subcontractor, Fujifilm Diosynth Biotechnologies, to help mass-produce a COVID-19 vaccine from the company Novavax. The federal government has reserved a high-tech bio-manufacturing facility in the Brazos Valley for production, which will generate new high-paying jobs for the area while placing Texas on the map for helping to solve one of the world's biggest crises. Read more here

Fujifilm Diosynth Biotechnologies Texas, LLC is a recipient of an $18.5 million loan through the Product Development and Small Business Incubator Program (PDSBI). Administered by the Office of the Governor, PDSBI loans finance the development and production of new or improved products in the state of Texas and/or the stimulation of new or existing small businesses in Texas.

Texas State Technical College receives COVID-19 training grant

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Texas State Technical College (TSTC) received a Skills Development Fund from the Texas Workforce Commission for training businesses that are impacted by COVID-19. TSTC will provide COVID-19 related training to medical professionals through a partnership with the Practice Management Institute. All courses provided will be online. Click here for more details about medical courses. TSTC is also putting together courses that are currently in high demand, including: Contact Tracing, Return to Workplace Safety Standards and How to Maintain a Healthy and Clean Work Environment.

Texas receives first-ever telemedicine station for residents in Milam County

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Texas A&M and OnMed debuted their new “telemedicine station” in Milam County, which is the first of its kind, allowing health practitioners to make a diagnosis and prescribe medications on the spot. Implementing the OnMed station is part of a series of rural health innovations implemented by Texas A&M Health Science Center through what is known as the Moonshot Research Project. This new technology has the potential to increase access to health care for residents in rural communities across Texas. Read more on this innovative health care advancement here.


Governor's
Small Business
Webinar Series


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Business Strategies for an Evolving Future

August 5, 2020 I 1-2 PM

Register Here

Join the Governor's Small Business Assistance Team and a panel of experts to discuss adaptive business strategies for an evolving future. This webinar will help guide business owners and entrepreneurs in implementing solutions, such as e-commerce and online strategies, to maximize business resiliency during uncertain times.


Texas Economic Update: June Snapshot


Texas added 243,900 jobs in June.

Texas continues to be the leader in the most private sector jobs added over the last 10 years.

The Texas unemployment rate dropped to 8.6%, down from 13% in May and lower than the U.S. rate of 11.1%.

The four-week moving average for initial unemployment claims continues to drop.

For the second consecutive
month, Leisure and Hospitality added the most jobs of
any major industry with the
addition of 142,700 positions.

Trade, Transportation, and
Utilities added a series-high
44,200 positions.

Retail Trade employment saw 42,000 jobs added.

For the full snapshot, visit our webpage here.


Watch the Governor's Recent PSAs


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Governor Greg Abbott and Dr. Guadalupe Zamora COVID-19 PSA (English and Español)

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Dr. Francisco Cigarroa COVID-19 PSA (Español)


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Texas in the News


10 Texas cities made the list of Best Places to Live in the U.S., with Austin taking the #1 spot.
-U.S. News & World Report

Frisco ranked #24 on the list of "Best Cities for First Time Home Buyers". Laredo ranked #1 and Amarillo ranked #5 on the "Lowest Cost of Living" list.
-WalletHub

Four Texas Metro Areas ranked in the top 50 best metros for saving money: Austin-Round Rock #23, Dallas-Fort Worth-Arlington #29, Houston-The Woodlands-Sugar Land #36 and San Antonio-New Braunfels #43.
-Self.inc

Midland ranked #1 on the list of "Best Small Metros for Saving Money".
-Self.inc

Half of the cities on the top 10 "Best Cities for Working Parents" were Texas cities.
-SmartAsset

Dallas-Fort Worth ranked as the top market in the country for industrial building construction and leasing.
-Cushman & Wakefield


USA Business Opportunities: Texas


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August 20, 2020 I 3 PM

AmCham Peru, the Commercial Service of the U.S. Embassy and the Ministry of Foreign Affairs will be hosting a webinar on business investment opportunities for Peruvian firms in Texas. Featured speakers include EDT's Executive Director, Adriana Cruz and International Business & Trade Specialist, Shirley Temple. More here.


COVID-19 Recovery Resources


Open Texas Checklists

The Governor's Report to Open Texas

FAQs for Texas Businesses and Communities

FAQs for Texas Business Permits & Licenses

Governor's Small Business Webinar Series

SBA COVID-19 Resources & Programs

SBA's Lender Match Tool

Main Street Lending Program

Texas Workforce Commission - Employer Resources

Texas Department of State Health Services 

Texas Department of Licensing & Regulation

Texas Comptroller of Public Accounts

Texas Alcoholic Beverage Commission

Texas Department of Agriculture

Texas Creative Arts/Film Industry Resources

Texas Music Industry Resources

Travel Texas Industry Updates

U.S. Chamber of Commerce Disaster Recovery Guides

SBA Guidance for Faith-Based Organizations

Texas Job Resources

Resources for Texas Communities

For additional information regarding the State's response to the Coronavirus (COVID-19), go to gov.texas.gov/coronavirus.


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We Want to Hear Your Good News!


We want to know about the good things happening in your community! EDT will be celebrating good news throughout Texas by sharing major milestones, awards and positive updates contributed by our community partners. To submit your good news to be considered for inclusion in our next Texas Business Bulletin, email our Marketing Team.


Partner Resources


TEEX Cyber Security Training

Texas Workforce Commission

Texas Veterans Commission - Veteran Entrepreneur Program

Texas Secretary of State's Office