Building Texas Show explores the city’s rapid industry growth, entrepreneurial programs and business-friendly development strategy
BUDA, Texas — July 20, 2026 — Buda is establishing itself as a growing destination for aerospace and defense companies seeking affordable, right-sized facilities along Central Texas’ Interstate 35 corridor.
In a recent episode of The Building Texas Show, host Justin McKenzie speaks with Buda Economic Development Corporation CEO Jennifer Storm and Greater Buda Chamber of Commerce CEO Monica Davidson about the strategies driving the city’s economic momentum.
The episode, titled The Aerospace & Defense Companies Picking Buda Over Austin, examines how the community south of Austin developed an emerging aerospace and defense cluster in approximately seven months, expanded Chamber membership and launched programs supporting entrepreneurs, educators and retailers.
“People are saying aerospace and defense is coming to Austin, but that’s not true. It’s coming to Buda and Bastrop and Lockhart and Kyle and San Marcos,” Storm said, recounting a recent conversation about the industry’s growth throughout the region.
Right-Sized Space Gives Buda a Competitive Advantage
According to Storm, many aerospace and defense companies are not searching for large greenfield development sites. Instead, they need existing facilities ranging from approximately 10,000 to 20,000 square feet that can accommodate near-term operations and future growth.
Buda offers companies several competitive advantages:
- Lower occupancy costs than many locations in the Austin area
- Access to the broader Central Texas workforce
- Available facilities in smaller, adaptable footprints
- Convenient connections to Austin and San Antonio
- A responsive economic development team focused on business growth
These factors are helping Buda compete with larger communities such as Austin, Round Rock and Pflugerville.
Incentives Tied to Company Performance
The episode also examines how the Buda EDC structures economic development incentives to limit taxpayer risk.
Storm said the organization uses performance-based rebates rather than upfront tax abatements. Companies receive incentive payments only after fulfilling commitments related to job creation, wages and other agreed-upon benchmarks.
If a company does not deliver the promised results, the EDC does not issue the rebate. Storm described this approach as a low-risk public investment aligned with the organization’s central mission of creating economic prosperity.
The Hive Supports 60 Entrepreneurs in Its First Year
Buda’s entrepreneurial ecosystem is also expanding through The Hive, an industry-neutral business incubator operated by the Buda EDC.
During its first year, The Hive completed four cohorts and served approximately 60 entrepreneurs. Participants have represented a wide range of industries, including:
- Artificial intelligence applications
- Drone technology
- Personal care and salon services
- Retail products
- Other emerging businesses and startups
Storm noted that the program also helps prospective entrepreneurs determine whether a business idea is financially sustainable. In some cases, choosing not to launch after evaluating the numbers can prevent founders from taking on years of unnecessary debt.
Historic Train Depot to Become Retail Incubator
The Buda EDC is also restoring the city’s 1884 train depot on Main Street to serve as a retail incubator.
The planned program will give qualifying entrepreneurs and Hive graduates opportunities to test products in a shared retail environment or operate from dedicated space for approximately 18 months to two years.
The incubator is designed to help new retailers build experience, refine their business models and establish a customer base before taking on the costs of a permanent storefront. The program is expected to launch around the beginning of 2027.
Chamber Membership Doubles Under Regional Strategy
Davidson, who also serves on the Buda City Council, discussed how the Greater Buda Chamber of Commerce doubled its membership during the past two years.
The Chamber initially focused on reconnecting with former members before expanding its outreach to major employers and regional businesses. Its membership now includes companies from South Austin, San Marcos, Lockhart, Luling and Mustang Ridge, as well as large local and regional employers such as US Foods, Texas Lehigh and Jardine’s.
The organization’s rebranding as the Greater Buda Chamber reflects its broader regional reach.
“I want to be where business begins in Buda,” Davidson said.
Teacher Externships Connect Classrooms With Local Careers
The episode highlights the Hays Consolidated Independent School District teacher externship program, which places career and technical education teachers inside area businesses during the summer.
Seventeen teachers are participating in the current program, gaining firsthand experience in fields such as accounting and audiovisual production. Educators can then use that knowledge to align classroom instruction with the skills local employers need.
The initiative supports Hays CISD’s 26 career and technical certification pathways while helping students better understand the employment opportunities available within their community.
Celebrating Buda’s Distinctive Identity
Storm and Davidson also discuss one of Buda’s best-known traditions: its designation as the Wiener Dog Capital of Texas.
The city’s wiener dog races began during the 1980s after a Buda Lions Club board member encountered a dachshund race in Georgia and proposed adding one to the organization’s Hill Country Fair.
The idea grew into Buda’s largest annual event, held each April. The Lions Club later secured the trademarked Wiener Dog Capital of Texas title.
About The Building Texas Show
Hosted by Justin McKenzie, The Building Texas Show spotlights the entrepreneurs, civic leaders and business operators shaping the next generation of Texas communities. Each episode explores how economic development, entrepreneurship and local leadership intersect across the state.
New episodes are released weekly on YouTube, Facebook, Instagram, LinkedIn and major podcast platforms.
Media Contact
Justin McKenzie
Host, The Building Texas Show
Phone: 210-748-2312
Email: Available through The Building Texas Show media contact page
