Dear Texas Economic Development Stakeholders,
The Texas economy is booming! According to the latest data from the U.S. Bureau of Economic Analysis, over the past two quarters, Texas saw economic growth of 5.9%—the highest growth rate among the large states in the country, and higher than the national average. In June, Texas was awarded its 9th Gold Shovel Award from Business Development Magazine, recognizing states for their ability to attract high-value-added investment projects expected to create a significant number of new jobs. In addition, Tesla’s new Texas Gigafactory was named project of the year and many other Texas projects received honorable mentions. These awards are a testament to our state’s resiliency and proves that we remain the best state for business in the nation.
In this newsletter, you will find more information on the Texas economy, an overview of Texas’ growing electric vehicle industry, an update on the 87th Legislative Session and much more. Be sure to visit our website and follow us on social media to receive the most up-to-date information and announcements from our office.
We want your feedback! With our newly formatted bulletin, we’re interested in what you think and how we can improve. Please answer these two questions, which will help us ensure that we continue to provide valuable and relevant content to our readers. Thank you for your continued support!
Unemployment Rate: 6.5%
Leisure & Hospitality: 14,200 jobs added
Professional & Business Services: 13,800 jobs added
Manufacturing: 3,200 jobs added
Jordan Hsu is a Research Specialist on the Business & Community Development team. Jordan’s responsibilities include researching grant applications, aggregating and analyzing data for marketing materials and reports, along with a wide range of other research and economic analysis activities. Jordan is currently on leave from the University of Wisconsin-Madison as a Ph.D. Candidate in Political Science. Before his graduate studies, Jordan briefly worked as a program director for a small market research firm in San Diego. He received an MA in Political Science from UW-Madison in 2017 and a BA in Political Science from the University of California, San Diego. Jordan is originally from San Francisco and enjoys visiting art and history museums, eating new and exciting cuisines and a range of sports activities. You can reach Jordan at (512) 936-3377 or through our staff directory.
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The electric vehicle (EV) industry is booming in the Lone Star State. Texas is becoming a national hub for both EV manufacturing and research and development (R&D). The electric transportation sector contributed close to $690 million to the state's economy in 2019. With EV demand and production increasing, Texas is driving unprecedented growth in this sector.
Last year, Texas was home to 1,200 electric transportation-related businesses, which employed more than 7,000 people. By 2024, the total workforce is expected to climb to nearly 14,000 as major manufacturers like Tesla and Navistar announce new facilities in the state. This surge in the EV sector is good news for both consumers and producers. Between 2017 and 2018, EV sales in Texas more than doubled. Companies are responding to this demand by building out the infrastructure necessary to support increased EV production.
In Texas, both private and public sectors lead EV R&D initiatives. Companies like Energy Exploration Technologies, SK Innovation and Momentum Technologies focus on R&D in EV. Higher Education institutions like the University of Texas at San Antonio and Texas A&M University have programs dedicated to exploring new technologies in EV and transportation electrification. For more on Texas EV and the automotive sector, visit our website.
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Our office continues to develop new materials highlighting the Lone Star State's best assets for various industry sectors. Check out these and other Reports & Publications on our website.
From auto manufacturing and parts suppliers to electric vehicles and autonomous technology R&D, the Texas automotive industry is attracting significant investments. Check out the new automotive industry snapshot to learn more!
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Texas is home to 49 Fortune 500 company headquarters in 2021; each helps bolster our state's superior corporate services sector. Check out the new Fortune 500 headquarters map to learn more!
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Continental Automotive Groundbreaking at New Braunfels Facility Site, June 2021
The Business Development team continues to see new prospects at the highest rate since before the start of pandemic. Currently, there are 245 active projects in the pipeline, which span a wide variety of industry sectors, looking at sites across the state. More than half of all active projects are in the manufacturing and advanced manufacturing industry sectors, with scientific & technical services, utilities, finance and insurance rounding out the top four sectors. Here are some of our recently announced projects:
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QTC in San Antonio: QTC Management, Inc. announced its new operation service center in San Antonio. The project will create more than 250 new jobs and more than $3 million in capital investment. The Texas Enterprise Fund extended a grant of $849,000 to the company.
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Frito-Lay in Rosenberg: Frito-Lay announced a $200 million investment at its Rosenberg facility. The expansion is expected to be completed in 2023 and create 160 new full-time jobs.
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Plastics Express in Baytown: California-based plastics resin logistics company, Plastics Express, announced the creation of 50 new jobs at the Cedar Ports Logistics Center in Baytown.
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Canoo in Dallas: Electric vehicle startup, Canoo Inc., announced plans to build offices in Justin, Texas, near the Dallas-Fort Worth area.
- Texas is home to 49 Fortune 500 headquarters in 2021.
- The Small Business Jobs Index, which tracks changes in employment for businesses with less than 50 employees, ranks Texas #1 in employment performance over the last 12 months. Dallas ranks #2 among all U.S. metros.
- Texas was awarded the 2021 Gold Shovel from Area Development Magazine for attracting high-value-added investment projects that will create a significant number of new jobs. This is Texas' 9th Gold Shovel award.
- According to Acorns, Brownsville and Amarillo rank #2 and #9, respectively, among all U.S. states for the lowest cost of living for retirees.
- Verizon's new ranking of the Most Business-Savvy Cities in America lists Sugar Land #1 and Frisco #8 among all U.S. cities.
- LinkedIn's list of Tech's Most Resilient Hubs ranks Austin #6 in the nation.
 The 87th Regular Legislative Session concluded at the end of May. The Legislature fully funded most EDT General Revenue and General Revenue Dedicated accounts, like the Economic Development Bank, Texas Enterprise Fund (TEF), Governor's University Research Initiative, Texas Moving Image Industry Incentive Program and the Spaceport Trust Fund.
The Legislature updated and added several economic development programs this session, addressing small and rural business disaster recovery. The lawmakers added several new events to the Major Events Reimbursement Program and broadened the Governor's University Research Initiative. SB 1465 created a Texas Small and Rural Community Success Fund, a successor to the Texas Leverage Fund which was created to provide loans to economic development corporations for eligible projects. The Legislature created the Texas Music Incubator Rebate program to provide to eligible music venues and music festival promoters a full or partial rebate of the mixed beverage gross receipts taxes and sales tax receipts attributable to the sale of beer and wine.
The state's winter storm response was named an emergency item by Governor Abbott, and several legislative measures were passed to prepare and respond to extreme weather emergencies and extended power outages. State lawmakers also established the Broadband Development Office within the Texas Comptroller's Office.
The Legislature will be meeting once again on July 8 for the first special session this year. The topics for this special session are forthcoming. There will be another session after the census numbers are finalized, sometime after September, so that the state's legislative districts can be redrawn.
Interested in working with the best state economic development team in the country? Well, the Governor's Office is hiring! There are multiple positions for experienced professionals in Business & Community Development, Travel Texas and the Texas Workforce Investment Council to be filled. In the Business & Community Development division, we are looking for two new project coordinators. These economic development professionals assist companies that are looking to relocate or expand to the Lone Star State with site selection, connecting companies with local leaders and navigating the state incentive programs. For more information on available positions, visit gov.texas.gov/employment.
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