Texas Border Business
In what has now become an annual tradition, Texas is once again the winner of Site Selection magazine’s Governor’s Cup. For the 14th consecutive year and 22nd year in total, Texas was recognized as the state that attracted the most major job-creating business location and expansion projects over the past year. In 2025, the Lone Star State attracted 1,406 projects, up from 1,368 in 2024 and 1,254 in 2023. This era of dominance began in the early 2000s, when enlightened economic development policies quickly moved Texas from the middle of the pack to the unabashed leader.
The 2025 projects involved more than 42,000 direct new jobs with over $75 billion in capital investment (in addition to multiplier effects, which are substantial given the types of projects). In comparison, the second-place state, Illinois, had less than half the number of projects (680), third-place Ohio had 467, California had a fourth-place 367, and fifth-place Florida had 326. In fact, Texas has doubled the second-place state in each of the past five years.
In terms of projects per capita, Texas ranks fourth, trailing only North Dakota (population 799,400), Illinois, and Kansas. The population of Texas is much larger at 31.7 million, which makes this ranking quite remarkable.
The 1,406 projects in Texas in 2025 were distributed across the state, with 1,147 of them located in the greater Houston, Dallas-Fort Worth, or Austin areas. Houston-Pasadena-The Woodlands was second on the list of Tier 1 (population of 1 million or more) top metros by total projects with 590, just behind Chicago-Naperville-Elgin (606). Dallas-Fort Worth-Arlington was third with 410, and Austin-Round Rock-San Marcos was sixth with 147. In terms of projects per capita, Houston-Pasadena-The Woodlands topped the list, with Austin-Round-Rock-San Marcos placing third and Dallas-Fort Worth-Arlington in fourth.
In addition to the Governor’s Cup, Texas was also recognized by Site Selection magazine as having the Best Business Climate in the US in 2025, along with capturing the 2025 Prosperity Cup, reflecting the state’s leadership in attracting capital investment. Holding these three designations simultaneously represents an unprecedented “Triple Crown” of economic development dominance, which reflects efforts of talented and dedicated professionals across the vast expanse of Texas.
Although the state faces daunting challenges, from water to electrical infrastructure to (especially) education, which must be addressed to ensure continued prosperity and investment, the extremely business-friendly environment in Texas continues to attract impressive expansion and investment. Factors including lower costs, competitive incentives, robust natural resources, a strategic location with strong logistics infrastructure, a large labor force, and a reasonable regulatory environment combine to make Texas a perpetual favorite for major private sector investments. If future needs are effectively addressed, healthy and sustainable economic growth is readily attainable. 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 more than 3,000 clients over the past four decades.
