By Texas Economic Development Corporation (TxEDC)
Texas continues to lead the nation in attracting both business and talent looking for economic opportunity and the freedom to grow. In 2019, the healthcare industry-leading McKesson Corporation joined the seemingly constant wave of companies relocating from California to Texas. In McKesson’s case, the move took the headquarters of the 76,000-employee company from San Francisco to the Las Colinas master-planned development in Irving, Texas.
Years later, CEO Brian Tyler has no regrets about the company’s relocation to Texas. In fact, CEOs considering a move to Texas were to contact him about McKesson’s experiences, Tyler said, “I would tell them I regret not doing it a decade earlier.”
Similar testimonials are offered by leaders of diverse industries ranging from aerospace and automotive to technology, advanced manufacturing, financial services, and biotech who now call Texas home.
The Texas Advantage
It’s no coincidence Texas has won the title as the Best State for Business for the last 18 years as awarded by Chief Executive Magazine. This is due in part to the Lone Star State’s unmatched, business-friendly climate—with no personal or corporate income tax, easy access to global markets, overall lower operating costs, and reasonable regulations, not to mention a diverse and growing workforce and an enviable quality of life.
From leading the nation in job creation in 2022 to having the most diverse city (Houston) and the safest city (Frisco) in the nation, the Lone Star State is a beacon of opportunity.
Texas’ more than $2 trillion economy, the ninth largest when compared to nations of the world, is fueled by a highly skilled, diverse, and growing workforce of more than 14.6 million, along with 3.1 million small businesses, thousands of publicly traded firms, and the most Fortune 500 corporate headquarters in America—all of which are bolstered by a statewide focus on a business-friendly climate where companies of all sizes can thrive.
The Texas economy is also supported by a diverse industrial base. The state is actively pursuing growth in industry sectors such as corporate operations, finance, advanced manufacturing, energy, biotech and life sciences, information technology, petroleum and chemical processing, and aerospace, aviation, and defense.
Jobs Giant & Talent Magnet
Texas’ economic successes are driven by our record-breaking job creation. Businesses large and small are continuing to break all-time job records with more than 13.7 million total jobs at the end of 2022 and more than 14 million Texans working.
And the Lone Star State continues to be a talent magnet, attracting the brightest minds from across the nation and around the world. With a diverse and growing population of more than 30 million, the state has added more than four million new Texans since 2010—more than California and New York combined. The Texas population is younger and growing faster than the country as a whole, offering companies the workforce they need to grow well into the future.
Top Tier Universities
In the last decade, Texas has grown from four Tier 1 research universities to now leading the nation in this category. In an economic development world increasingly dominated by the need for high-quality and skilled talent, this is another reason businesses continue to relocate and expand in Texas.
At the end of 2021, the following Texas universities achieved Tier 1 Status:
- Baylor University
- University of Texas at San Antonio
- Texas Tech University
- University of Texas at Arlington
- Texas A&M University–College Station
- University of Texas at Dallas
- University of Texas at El Paso
- University of Texas at Austin
- University of North Texas
- University of Houston
Also the home to top-ranked universities for business, engineering, and more, and a leading state for biotech, engineering, and electrical engineering doctorates, Texas is well positioned to help businesses continue to innovate for years to come.
Strategically located in the center of North America, a key piece to Texas’ economic strength is our robust infrastructure and ports system. Home to more miles of public roadways, state highways, freight railways, and airports than any other state in the country, people and goods can move easily throughout the Lone Star State by air, land, or sea and quickly reach customers across the nation and the world.
Texas serves as a logistical hub for the entire country and offers easy access to all major domestic and international markets.
Leader in Exports
Accounting for nine percent of all U.S. GDP, it’s no surprise that Texas has led the nation in exports for the last 21 consecutive years, proving that “Made in Texas” has never been a more powerful global brand. In addition, Texas exports in 2021 accounted for more than one million jobs, according to the International Trade Administration.
Among the factors that have contributed to Texas’ 21-year export streak are:
- A business-friendly regulatory environment.
- A low tax burden.
- A strong, established infrastructure and a global logistics network.
- A high level of collaboration among state and local economic development professionals.
The state’s leadership in the high-tech industry also plays a key role. In the state where the microchip was first born, the future of America’s semiconductor industry is already building for tomorrow as Texas ranks as the top state in the nation for semiconductor manufacturing and exports. Texas has now led the nation in semiconductor exports for 12 years in a row and for high-tech exports for 10 years.
Countries around the world recognize the strength of the Texas economy when it comes to international trade and foreign direct investment. Mexico ranks as the state’s top trading partner followed by Canada, China, South Korea, Brazil, Japan, India, the Netherlands, the United Kingdom, and Taiwan. In addition, Texas ranks as the top state for foreign direct investment with top countries including South Korea, Germany, Japan, Saudi Arabia, and France.
The Headquarters of Headquarters
The Lone Star State champions a world-class economic landscape, bringing businesses of all sizes and people from all backgrounds to a state fueled by one of the lowest business operating costs in the nation, creating an environment that is attractive for corporate headquarters across all industries. Paired with a reasonable regulatory environment, a lower cost of living, and an exceptional quality of life, Texas is a top state for corporate headquarter relocations and expansions.
Texas has a robust corporate services workforce estimated to be more than 1.5 million, allowing businesses to find specialized labor and back-office support in finance, information technology, human resources, and more. In 2021, 80 companies relocated their headquarters to Texas, the most in the state’s history. This includes Fortune 500 corporate relocations such as AECOM, NRG Energy, and Tesla. Most recently, Caterpillar Inc., the world’s leading manufacturer of construction and mining equipment, announced the relocation of their global headquarters to Irving. Governor Greg Abbott said relocations like Caterpillar are a “testament to the boundless opportunity Texas has to offer.”
Additional recent headquarter relocations and expansions include:
- Archaea Energy, one of the largest renewable natural gas producers in the U.S., chose Houston as the site of their new headquarters.
- Apollo USA, a California-based specialty products firm, announced plans to make North Richland Hills the location for their new headquarters.
- CCIntegration, Inc. in Plano: CCIntegration, Inc., an original equipment manufacturer, has established a new corporate headquarters in Plano.
- DaBella Exteriors, a home improvement company, announced they will move their headquarters from Oregon to Austin.
- Kraken Technologies, an Octopus Energy Group company, announced their first U.S. headquarters will be in Houston.
- M2M Certified Inc. in Austin: M2M Certified Inc. officially moved its headquarters of operations to Austin to capitalize on the next boom in technological expansion in the region.
- Parus Holdings Inc., a maker of voice-enabled technologies, announced the relocation and expansion of their corporate headquarters in Austin, relocating from Illinois.
- Ranchland Foods LLC, a grass-fed, free-range chicken, and organic meat food production company, relocated their main distribution facility to Denton.
- SI Group, a performance additives company, announced the relocation of their global headquarters and research and development facilities to the Woodlands.
- Ulrich Medical USA Inc., a medical device company, announced they are relocating from Missouri to Plano.
Under Governor Abbott’s administration, there have been more than 270 corporate headquarter relocations to the state since 2015. And this number continues to grow as companies flock to the Lone Star State to escape high-taxed and over-regulated states.
While many companies are announcing their move to Texas, companies already headquartered in Texas are making their impact nationally. In 2021, 49 percent of all expansion and relocation projects in the U.S. were attributed to companies headquartered in Texas. These projects represented $41.4 billion (60 percent) of all capital investment across the U.S.
Quality of Life
“Night and day.” That’s how one CEO described the difference between Silicon Valley and his new Texas headquarters. In Texas, employers and workers alike enjoy low taxes, low housing costs, and high-quality education options coupled with a vast range of recreational opportunities. That’s why Texas cities, large and small, continue to attract a diverse group of millennials, families, and entrepreneurs. With plenty of cultural offerings at museums, restaurants, music venues, and more across the state, we truly do have something for everyone—whether you’re looking for a rural oasis or busy city lifestyle. There’s simply no place in the world quite like Texas.
Texas Economic Development Corporation
The opportunities in Texas are as vast as the state itself, and we at the Texas Economic Development Corporation (TxEDC), in partnership with the Governor’s Office of Texas Economic Development & Tourism, are promoting Texas across the country and across the world as the best location for businesses to locate and expand.
Through a robust program of national and international investment attraction missions, industry events, media relations, advertising, and other signature initiatives, TxEDC spreads the word of Texas’ business advantages among a target audience of corporate decision makers and site-selection consultants. The organization is made possible through the support of a broad range of organizations, Fortune 500 companies and privately held enterprises throughout the state.
Interested in learning more about the Texas advantage? Contact us at www.businessintexas.com.