Texas Border Business
Texas continues to dominate the major corporate location and expansion landscape in the US, winning Site Selection magazine’s 2024 “Governor’s Cup” for an unprecedented 13th year in a row. The Cup is awarded annually to the state with the most projects involving a capital investment of at least $1 million, 20 or more new jobs, or at least 20,000 square feet of new construction. The 2024 total was the highest ever for Texas.
Texas gained 1,368 projects, up from 1,254 in 2023. The Lone Star State’s total more than doubled second place Illinois, which had 664, and far outpaced Ohio (565), California (323), Georgia (262), North Carolina (261), Florida (247), and New York (231). For the fourth consecutive year, Texas had over twice as many projects as any other state.
The largest project was in the electronics sector, with a $10 billion investment, followed by two IT and communications sector projects, with investments of $8 billion and $6.1 billion. Eleven of the top 25 projects in Texas were technology-oriented projects, and they’re located across the state. Chemicals and plastics projects along the Gulf Coast were also among the 25 largest, and other industries represented include consumer products, business and financial services, energy, automotive, life sciences, and food and beverage. Major initiatives are moving forward throughout the state, with big cities and smaller towns alike being well represented.
This unparalleled streak illustrates the enduring power of a dynamic economy that facilitates success for companies and individuals. In fact, the state has won the Cup 21 times since coming out of the pack following the implementation of the Texas, Our Texas initiative in the early 2000s (which we were privileged to write). The consistent performance is a testament to the state’s business environment and the work of many dedicated economic development professionals.
Additionally, this level of momentum builds on itself. For example, Texas continues to attract people from other regions, including large numbers in prime working-age groups. Key reasons are job opportunities and a lower cost structure. Expanding economies require a steady stream of skilled workers who, in turn, facilitate further growth.
Texas is emerging as an epicenter for the ongoing digital transformation, with semiconductor plants and their associated suppliers, data centers, crypto miners, and more choosing to locate in the state. Life sciences are also seeing accelerated activity. Vast natural resources remain a catalyst to growth. In addition to oil and natural gas, the state is also the leader in the next phase of energy development, including renewables, hydrogen, and nitrogen.
Texas is well positioned to sustain this momentum, though it is crucial to invest heavily in the educational and infrastructure resources required to ensure ongoing success. Stay safe!
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Dr. M. Ray Perryman is President and Chief Executive Officer of The Perryman Group (www.perrymangroup.com), which has served the needs of over 3,000 clients over the past four decades.
