< Previous78 TE X A S E C ONOMI C D E V E L OP ME NT G U I D E A G R I B US I N E SS & FO O D P R O C E SS I N G It seems stay-at-home orders across the U.S., in response to the COVID-19 pandemic, have had a significant impact on people’s eating habits — and the food production industry. With more people eating meals at home, food producers have seen increased demand for their products, spurring several expansions at food processing facilities across the U.S. One of the world’s largest meal kit companies, Berlin-based HelloFresh, is opening a new state-of-the-art facility in Irving to meet rapidly increasing demand for their products. In August, the company leased a new production and distribution facility to increase overall production capacity by more than 30%. The nearly 375,000 sq. ft. distribution center — HelloFresh’s largest facility to date — will include office space, cold storage, packing and shipping areas, and could provide as many as 1,200 new jobs for the area as HelloFresh expands its presence to continue supporting rapidly growing demand and new customer growth in the South and Midwest regions of the U.S Alongside its current facility in Grand Prairie, this new distribution center augments HelloFresh’s existing production and shipping capabilities in the Dallas-Fort Worth metro area. By being co-located with its other facility in the same market, HelloFresh is leveraging operational efficiencies while tapping into existing supplier relationships and a strong workforce. “These latest centers support our investment in long-term growth as we execute on our strategy to continue expanding our total addressable market through fresh geographies, new customer segments and various demographics,” said Uwe Voss, CEO of HelloFresh U.S. “To achieve this, we are expanding supply chain capacity and actively iterating on our menu to satisfy new and existing customers, expanding recipe selection, adding more convenient offerings and increasing meal customization options to maintain our long-term growth momentum.” Breakfast Facility Expands in Hometown Arkansas-based Tyson Foods, Inc. is investing $26 million to expand production at its Wright® Brands Bacon facility in Vernon by SAVANNAH KING Food Producers Expand in Texas to Meet Increased Consumer TE X A S E C ONOMI C D E V E L OP ME NT G U I D E 79 to satisfy current demand and allow room for additional growth. The bacon brand has had a home in Vernon since 1922. The expansion is expected to create 32 new jobs that will bring total employment to more than 800. The bacon category has seen increased volume in retail growth, up 18% since 2017, as new people enter the market and existing buyers consuming more bacon, most recently due to increased at-home meals. Surpassing category growth during this period, Wright Brand has increased volume by 29% as more buyers are introduced to the brand. “We’re pleased we can continue to build on the proud heritage of this iconic and delicious brand,” said Noelle O’Mara, group president of Prepared Foods for Tyson Foods, Inc. “More importantly, we’ve had a strong presence in Vernon for nearly 100 years as one of the largest employers. It’s an honor to continue that long history by adding new jobs in the local community.” Tyson Foods and its family of companies operate 10 food processing plants in Texas, employing more than 12,000 team members and paying more than $480 million in annual wages as of the most recently completed fiscal year. The company also contracts with more than 230 poultry growers and more than 90 cattle suppliers in the state. It’s estimated Tyson Foods’ operations have a total annual impact of nearly $3 billion in Texas. Goya Grows in Texas In October, the largest Hispanic- owned food company in the U.S., Goya Foods, announced a new $80 million expansion of its manufacturing and distribution facility in Brookshire. The expansion will double production capacity to meet increased consumer demand. Goya’s Texas facility sits on a 130- acre farm has served as the prime hub for the manufacturing and distribution of Goya products in the West and provides key access to a skilled workforce, a favorable business climate, railroad transportation, and a launching pad for global export. “Goya is committed to meeting increased consumer demand for our products from all consumers across the United States and abroad. We are grateful for the overwhelming support of the Goya brand, and we are fortunate to be able to give back to communities around the globe donating millions of pounds of food through our Goya Gives program,” said Bob Unanue, President and CEO of Goya Foods. Goya Foods announced an $80 million expansion of its manufacturing and distribution facility in Brookshire. Photo courtesy of Tyson Arkansas-based Tyson Foods, Inc. is investing $26 million to expand production at its Wright® Brands Bacon facility in VernonIf you are one of Elon Musk’s 45 million Twitter followers, you may have noticed a number of tweets calling attention to Brownsville, Texas. Specifically, the CEO of Tesla and SpaceX has asked his followers to consider moving to the yet-to-be- built city of Starbase, near Brownsville and South Padre Island. SpaceX has operated a launch site in Boca Chica since 2012, where it tests its Starship prototypes that the company hopes will one day take people to Mars. Musk’s tweets noted SpaceX will be hiring more engineers, technicians, builders and support personnel in the area as it continues to grow. While impressive, SpaceX is hardly the only company in Texas aiming for the stars. Texas has long been home to leaders in aerospace, aviation and defense with major operations including Boeing, Bell Helicopter, Lockheed Martin, Raytheon, L-3 Communications and General Dynamics. The U.S. Army also recently selected the state as the location for its first Army Futures Command Headquarters. Founded in 2016, Houston- based Axiom Space, Inc., is developing the world’s first commercial space station. by SAVANNAH KING TEXAS: HOME BASE FOR SPACE EXPLORATION 80 TE X A S E C ONOMI C D E V E L OP ME NT G U I D E A E R O S P A C E , A V I A T I O N & D E F E N S E Photo courtesy of SpaceXTE X A S E C ONOMI C D E V E L OP ME NT G U I D E 81 Axiom recently secured $130 million in a new round of venture funding which will accelerate the growth of the company’s workforce and construction of its privately developed space station. The Axiom Station will serve as the central pillar of a thriving network of commerce in Earth’s orbit — a linchpin of a space economy that Bank of America and Morgan Stanley both project could be valued at more than $1 trillion in the next few decades. “Axiom Space is a force in the space sector, and it will become a centerpiece of the C5 Capital portfolio and enhance our vision for a secure global future,” said C5 operating partner Rob Meyerson, who will join the Axiom Board of Directors. “The Axiom Station will be the infrastructure upon which we will build many new businesses in space, and it will serve as the foundation for future exploration missions to the Moon, Mars, and beyond.” In January, Axiom revealed its plans to fly a historic first private astronaut crew to the International Space Station (ISS) no earlier than January 2022. NASA selected Axiom to begin attaching its own space station modules to the ISS in January 2020. The company plans to deliver as early as 2024. By late 2028, Axiom Station will be ready to detach when the ISS is decommissioned and operate independently as its privately owned successor. BAE Systems Expands Austin Operations. In August 2020, BAE Systems, one of the world’s leading aerospace and defense technology companies, expanded its operations in Austin with a new campus development in Parmer Austin Business Park. The new facility is located near the U.S. Army’s Futures Command, as well as the Austin Capital Factory, which is central to the innovation and entrepreneurial ecosystem in Austin. When completed, BAE Systems’ new campus will be valued at approximately $150 million and will include engineering, manufacturing, laboratory, and office space to primarily support U.S. Department of Defense customers. BAE Systems is working with Karlin Real Estate on construction of its new 390,000-square-foot-facility which will begin this year and is expected to be complete in 2022. Scott Hatch, Site Director of BAE Systems Austin Business Center, explained the company’s expansion in Austin came down to three factors. • “Community: BAE Systems has a rich history — over 65 years — in the Austin community. This expansion continues our longstanding legacy of innovation in Austin, while also preparing us for our projected engineering and manufacturing growth. • “Innovation: The innovation ecosystem in Austin is unique and we want to continue to be an active participant. The new facility is located near the U.S. Army’s Futures Command, as well as the Austin Capital Factory. BAE Systems is a member of the Capital Factory’s Innovation Council and collaborates with startups and small businesses to accelerate the development of new defense technology for America’s military. BAE Systems’ Austin employees innovate for a wide range of programs in the areas of autonomy, cyber, sensor development and electronic warfare, and manufacture those leading-edge capabilities on the company’s factory floor. • “Talent: Austin is a great place to attract and retain a diverse workforce. It is an ideal location to attract the talent we need to deliver the latest capabilities to our customers.” “Our expansion continues our longstanding legacy of innovation in Austin to grow next-generation capabilities that include the design, development, and manufacturing of radio frequency and electro- optical/infrared countermeasure systems primarily for our aerospace and defense technology customers,” said Hatch. BAE Systems is expanding its Austin campus with a new 390,000-square- foot-facility. Photo courtesy of credit BAE Systems82 TE X A S E C ONOMI C D E V E L OP ME NT G U I D E Logistics networks link manufacturers in Amarillo, Lubbock to major markets. by RON STARNER HIGH PLAINS DRIFTING R E G IO N P R O F ILE — HIG H P L A IN S Texas Tech University in Lubbock Courtesy of Travel Texas/Jamie HudsonTE X A S E C ONOMI C D E V E L OP ME NT G U I D E 83 If you’ve ever driven through the northern panhandle of Texas, you’ve witnessed the windswept plains and vistas that cover vast stretches of territory from Oklahoma to New Mexico. This 41-county High Plains region covers 39,500 square miles and includes two large metropolitan areas: Amarillo and Lubbock. About 872,000 people live in this north Texas region and account for 3% of the state’s population. Since 2010, the High Plains have experienced a population increase of nearly 4%. Major industries in the region include animal production and aquaculture; oil and gas extraction; mining; leather and allied product manufacturing; food manufacturing; crop production; pipeline transportation; petroleum and coal products manufacturing; agricultural and forest-related support activities; and heavy and civil engineering construction. In 2020, the region landed a number of significant corporate facility investment projects. Among the more notable deals were a $14 million investment from Sharpened Iron Studios in Amarillo, creating 40 jobs; a $10 million new manufacturing plant from Caviness Beef Packers in Amarillo; an $87 million investment from General Advanced Food in Lubbock, generating 125 jobs; and a $24 million investment by Amazon for a distribution warehouse in Lubbock, adding 279 new jobs. Texas Tech University in Lubbock is the flagship college in this region, but a strong network of community colleges and other 4-year universities also dot the High Plains. Interstate 40 is the primary east-west thoroughfare, linking the High Plains with both coasts of the United States of America. One can merge onto I-40 in eastern North Carolina and drive this highway all the way to California and the Pacific Coast. It also serves as the main alternate route to the famed Route 66. Multiple airports and major rail lines also serve the 41 counties in this region, making the High Plains a highly desirable location for manufacturing, food processing, logistics and distribution. SECTOR PROJECTS IT & COMM. 1 AUTOMOTIVE 1 FOOD & BEVERAGE 1 TRANSPORT & LOGISTICS 1 MACHINERY, EQUIP. & CONST. 1 SECTOR PROJECTS IT & COMM. 3 LIFE SCIENCES 2 MACHINERY, EQUIP. & CONST. 2 BUSINESS & FINANCIAL SERVICES 2 TRANSPORT & LOGISTICS 2 FOOD & BEVERAGE 1 2020 AMARILLO’S TOP PROJECT SECTORS 2020 LUBBOCK’S TOP PROJECT SECTORS THE LUBBOCK MSA ACCOUNTS FOR 37% OF THE POPULATION IN THE HIGH PLAINS REGION. Source: Conway Data Source: Texas Comptroller Courtesy of Travel Texas/Jamie Hudson84 TE X A S E C ONOMI C D E V E L OP ME NT G U I D E RE G I ON P R OF I L E — NOR TH W E S T by SAVANNAH KING NORTHWEST TEXAS DRAWS INVESTMENT ACROSS SECTORS Courtesy of the Development Corporation of AbileneTE X A S E C ONOMI C D E V E L OP ME NT G U I D E 85 Texas’s Northwest region is a 30-county area stretching from the Oklahoma border to the Colorado River, from Big Spring to Fort Worth. The region includes the MSAs of Abilene and Wichita Falls. In 2019, the region’s population was approximately 550,500. The region’s workforce is supported by several higher education institutions, including Midwestern State University in Wichita Falls, Texas State Technical College and Texas Tech Health Sciences Center in Abilene. According to the Texas Comptroller’s office regional report, Dyess Air Force Base and Sheppard Air Force Base supports nearly 42,000 jobs in the region. Abilene is the heart of the region’s economic engine. The city is a powerhouse for the oil and gas industry (representing a $1.22 billion economic impact on the area) and renewable wind energy. Abilene is home to Broadwind Energy, General Electric, Run Energy and TGM Wind. The city is also a stronghold for health care, education and manufacturing, aviation and aerospace. Hartmann’s Inc., a homegrown Abilene company since 1955, recently expanded into a new 100,000 sq. ft. facility, representing a $12.5 million investment. The company produced precision parts for large companies, including Johnson & Johnson, Boeing, Lockheed Martin, Emerson Automation and more. Nearly 150 miles away, Wichita Falls offers businesses a strategic position at the midpoint between the Dallas- Fort Worth metroplex and Oklahoma City. This key cross point is a regional hub for both North Texas and South Central Oklahoma. The city attracted several significant investments from a variety of industries in 2020. In June, Pamlico Air, a high- quality air filter manufacturer, opened a new manufacturing facility in Wichita Falls. With additional facilities in Florida, North Carolina and Nevada, its new 180,000 sq. ft. site is also its largest facility. In September, Dallas-based Panda Biotech selected Wichita Falls to be the home of the largest and most state-of-the- art industrial hemp processing center in the United States. The Panda Texas Plains Hemp Gin will also be the first facility in the nation to cottonize hemp fiber on a commercial scale for the American textile industry and export customers In February 2021, Vexus Fiber, the leading fiber service provider in West Texas, began constructing a 10 Gigabit fiber- to-the-home network in the city. The network will connect to more than 30,000 new homes and businesses in the area. This network expansion is part of ongoing construction that will bring Vexus services to more than 19,000 homes and businesses in Wichita Falls before the end of 2021. SECTOR PROJECTS MACHINERY, EQUIP. & CONST. 2 AEROSPACE 1 SECTOR PROJECTS MACHINERY, EQUIP. & CONST. 1 TEXTILES 1 2020 ABILENE’S TOP PROJECT SECTORS 2020 WICHITA FALLS’ TOP PROJECT SECTORS Northwest Texas is a regional hub for both North Texas and South Central Oklahoma. Source: Conway Databy SAVANNAH KING METROPLEX SPURS INNOVATION AND TECHNOLOGY GROWTH 86 TE X A S E C ONOMI C D E V E L OP ME NT G U I D E RE G I ON P R OF I L E — ME TR OP L E X Photo: Getty ImagesDallas’ reputation for spurring innovation with homegrown companies like Dell Technologies hasn’t slowed down over the years. If anything, it is attracting a new generation of technology leaders to the region. The 19-county Metroplex region covers approximately 15,600 miles in northern Texas, reaching from Oklahoma to the Brazos River. The region includes the Dallas-Forth Worth- Arlington (DFW) and Sherman-Denison MSAs. Home to about 8 million people, the region has grown steadily since 2010. The DFW region accounted for 94.9% of the region’s population in 2019. Dallas is the third-largest city in the state. Dallas and Fort Worth are also among the fastest-growing cities in the country. The region supports various industries, including defense, financial services, corporate headquarters, information technology, semiconductors, manufacturing, telecommunications, and logistics. Throughout 2020 and the first part of 2021, several companies announced expansions and relocations to the region. Companies like CBRE, Charles Schwab, Core-Mark, and McKesson moved their headquarters to the area, while others like Uber, Toyota and Vistaprint significantly expanded their operations. Additionally, the DFW region is home to 3 of the 10 largest U.S. operations (ExxonMobile, McKesson and AT&T) According to the Dallas Chamber, DFW has the 6th-largest concentration of high-tech jobs in the U.S. It’s also No. 2 for large metro annual job growth. With a robust talent pipeline, the region enrolls more than 380,000 students annually at many public and private colleges and universities. Logistically, the region offers easy access to the globe. The Dallas Fort Worth International Airport’s cargo network connects the region to 28 major hubs around the world. The first high-speed railway in the nation can also take riders from Dallas to Houston in less than 90 minutes. SECTOR PROJECTS MACHINERY, EQUIP. & CONST. 51 BUSINESS & FINANCIAL SERVICES 48 TRANSPORT & LOGISTICS 41 IT & COMM. 34 FOOD & BEVERAGE 23 2020 DALLAS - FORT WORTH - ARLINGTON’S TOP PROJECT SECTORS Source: Conway DataNext >