< PreviousIn Texas, small doesn’t necessarily mean the same thing as it does in other states. Small businesses seem to grow larger in Texas, and small towns can offer more than some major metro areas. In Abilene, that is undoubtedly true. Consider the case of Hartmann’s Inc., which got its start in Abilene back in 1955 as a small engine repair shop. According to the founder’s grandson and company president, Alan Hartmann, it is still a “small company” with just 55 employees at its headquarters and manufacturing facility in Abilene and another seven at its Jacksonville, Florida, location. Today, the family-owned company produces precision parts for some of the biggest names in the aerospace, automotive and medical industries — like Johnson & Johnson, Cummins Engines and Emerson Automation. Hartmann’s also serves a few other local customers in the DFW area, including Boeing, Pratt & Whitney, Lockheed Martin, Raytheon, and Aerojet Rocketdyne. Hartmann said that operating the company for nearly 70 years in Abilene has provided several benefits. First, Abilene’s people are skilled and hardworking, which has given the company a solid team to rely on over the years. Second, I-20 provides easy access to technical resources in major cities like El Paso and the Dallas-Fort Worth metro area. Finally, “the city has been absolutely fantastic in our latest growth push that we’ve had,” Hartmann said. Abilene’s central location offers ease of access to markets on both coasts, the Midwest, northeast and Mexico. With Interstate 20, U.S. highways 83, 84 and 277, as well as rail services by Union Pacific and Southern Switching Company, getting goods to market from Abilene is easy. In 2020, more than 122,500 people called Abilene home. Additionally, the region boasts a 19-county labor shed representing more than 140,000 people. The city is home to several higher education institutions, including three private universities, two public community and technical colleges and the Texas Tech Health Science Center — Schools of Nursing, Public Health & Pharmacy. Dyess Air Force Base in Abilene supports more than 5,000 civilian and military personnel and 8,000 family members and retirees. With ample space and easy access to markets, Abilene draws companies to Northwest Texas. by SAVANNAH KING 68 TE X A S E C ONOMI C D E V E L OP ME NT G U I D E I N V E S TME NT P R OF I L E : ABILENE, TEXAS Small Town, Big Opportunity TOP: Abilene’s SoDA District. ABOVE: Hartmann’s Inc. Photos courtesy of Development Corporation of AbileneTE X A S E C ONOMI C D E V E L OP ME NT G U I D E 69 Room to Grow The city’s two business parks and available properties mean companies have plenty of room to grow when they need to. Abilene’s next-generation industrial park, Access Business Park, offers several shovel-ready sites ranging from 2 to 15 acres. While the city’s 1000-acre business park, Five Points Business Park, provides ample room for all- sized companies. Five Points Business Park offers companies easy access to Interstate 20, with service by Union Pacific Railroad, and is fully equipped with electrical, natural gas, water and wastewater and fiber optics for telecommunications. Additionally, the park is only a 15-minute drive from the Abilene Regional Airport, which offers six round-trip daily commercial flights to Dallas-Forth Worth and two round-trip daily commercial flights to Houston. In 2019, Hartmann’s Inc. had reached a critical junction. With several new contracts secured, Hartmann said the company found itself at the precipice. “We had to either grow or cut back,” Hartmann said. “For the sake of the company and everyone that works here, we said, ‘We’re pushing forward, and we’re going to be on the cutting edge of what we do.’ And that’s exactly where we are.” In early 2020, Hartmann’s Inc. invested $12.5 million into its new 100,000-sq.-ft. facility in the Five Points Business Park with help from the Development Corporation of Abilene (DCOA). Hartmann explained that the DCOA’s hands-on approach to working with businesses has benefited the company in the last year. “I’m very thankful for the vision and the persistence of the DCOA,” Hartmann said. “We were looking at a smaller building in Five Points. (They) said to me, ‘Alan, I think you’re too close to the growth. You can’t see what you’re going to need in the future. You’re too close to it.’ By the good grace of the Lord and a little persuasion, we wound up here in this magnificent facility.” Hartmann says the larger facility has given the company room to become leaner and more efficient. “Abilene is a fantastic city. Misty Mayo and her entire team at the DCOA, I cannot say enough good things about them,” Hartmann said. “They are unbelievably professional, and they’re here for the best interest of not only the company that’s moving in but also the city.” Business Friendly Reputation Abilene and the DCOA team’s reputation has been known to attract companies to the area in the past. For instance, when Prairie Dog Pet Products found itself ready to scale up, the company turned to the DCOA. Founded in Dallas a decade ago, Prairie Dog Pet Products began by offering elk and deer antlers as natural pet treats. Demand for the product took off and hasn’t slowed down yet. Today the company is growing and is in the process of becoming a new pet food brand called Primal Pets. Scott Gordon, CFO of Primal Pets, said it was Abilene’s proximity to Dallas, large labor pool and the DCOA’s helpfulness that led the company to choose Abilene for the site of its 100,000-sq.-ft. manufacturing facility in 2015. Primal Pets is currently planning to expand its operation by 60,000-sq.-ft. in the next two years. Gordon said the company also plans to triple its workforce at the same time. “From a location standpoint, let’s face it, Five Points Parkway is right on the interstate,” Gordon said. “It is a benefit. Getting in and out is easy. There’s a lot of space at Five Points — the DCOA has a lot of dry powder. It’s not like you’re going to be competing with folks — at least in the beginning — for limited space. It’s Texas and there’s a lot of space around us. Not to mention the people, the people of Abilene are the kind of folks you would want to partner with when you’re going forward.” They say everything is bigger in Texas, and Abilene’s small-town community spirit has enormous appeal for companies of all sizes. “The people of Abilene are the kind of folks you would want to partner with when you’re going forward. ” — Scott Gordon, CFO, Primal Pets This Investment Profile was prepared under the auspices of the Development Corporation of Abilene. For more information, please contact dcoa@abilenedcoa.com; 325.676.6390. Dallas Fort Worth Lubbock Amarillo ABILENE Houston San Antonio Austin70 TE X A S E C ONOMI C D E V E L OP ME NT G U I D E as many global companies operate cyber operations in the city as well, including Northrop Grumman, Deloitte, Raytheon, Verizon and many others. Port San Antonio, built on the site of the former Kelly Air Force Base, is home to more than 14,000 jobs. Nearly 4,000 of those jobs have been added by the port’s tenant customers since its Tech Port vision was launched in 2018. The Tech Port vision aims to leverage the port’s unique industrial platform and deliver innovation technology solutions to large industries including aerospace, energy, defense, cybersecurity, manufacturing, logistics, financial services and medicine. Directly across the street from Joint Base San Antonio Lackland, Port San Antonio has recently made several key investments to its 1,900-acre campus. In 2018, the port completed the first facility at Project Tech, a 90,000-sq. ft. facility built for secure research and testing laboratories for cybersecurity. In September 2019, the port expanded again with a 174,000 sq. ft. Project Tech Building 2. Like building 1, building 2 included features important to cybersecurity operations including fully redundant power and telecommunications connectivity. Will Garrett, Vice President of Cybersecurity development at Port San Antonio, said the Project Tech Building 2 was leased in less time than the first building, a clear sign of the opportunity that exists in the space. Building for Talent and Innovation In August 2020, the port began constructing Port San Antonio expands for next wave of cybersecurity, tech growth. by SAVANNAH KING Safety in San Antonio: C Y BE R S E C U R I T Y Innovation Center Arena Image courtesy of Port San Antonio San Antonio is one of the nation’s largest hubs for the cybersecurity industry. Behind Washington D.C., San Antonio is home to the most cybersecurity professionals in the U.S. Bolstered by one of the nation’s largest military populations, including the Sixteenth Air Force (Air Forces Cyber) headquarters at Joint Base San Antonio Lackland, and the National Security Agency (NSA) Central Security Service Crypotologic Center and the FBI Cyber Division, San Antonio’s network of military and private sector businesses has created a unique atmosphere of innovation and defense technology. Today, the city is home to over 100 cybersecurity companies, and nearly 40 cybersecurity company headquarters. Nearly TE X A S E C ONOMI C D E V E L OP ME NT G U I D E 71 a full-spectrum innovation center that will significantly advance the port’s mission to accelerate the pace of American ingenuity. The new building will span 130,000 square feet representing an investment of approximately $60 million. Construction is expected to begin in early 2022. “From a site selector standpoint, companies say what they’re looking for 1, 2 and 3 is talent, talent talent,” Garrett says. “That’s the impetus and motivation for our new innovation center.” The upcoming space will be a leading destination that engages hundreds of thousands of people annually from throughout the region, across the country and around the world. They will include competitors and spectators of major esports events; students and their families participating in entertainment, cultural and learning experiences; and leading experts who will use the facility to collaborate while they create, showcase and sell their latest technological innovations. Additionally, the innovation center will increase the reach of innovative learning experiences that inspire and educate people — from K-12 students to working professionals — and guide them toward career and entrepreneurial pathways involving the tech breakthroughs originating in the region. Another key component to the talent equation, the San Antonio Museum of Science and Technology has become an essential partner in inspiring the next generation of tech professionals. The museum recently launched a new public, security operations center that allows visitors to engage in cyber threat simulations. Programs like this give students hands-on experience combating simulated cyber threats. Safe Base of Operations Lockheed Martin, the largest defense contractor in the U.S., was the first company to launch operations in Project Tech Building 1 secure facility for cybersecurity operations in March 2019. The site is located directly across the street from the headquarters of the 24th Air Force’s Cyber Command. “Being co-located is important,” said Lockheed Martin Vice President of Spectrum Convergence Deon Viergutz. “This will be an innovative environment that we envision over the coming years will be a place where Lockheed Martin and our customers are able to come together to collaborate in a single place where the mission is executed.” Lockheed Martin’s Port San Antonio site houses two of its cybersecurity divisions: Spectrum Convergence and Cyber Solutions. The company strategically designed its space to accommodate clients across both realms in conducting cyberwarfare exercises to test potential scenarios for offensive and defensive cybersecurity training. Among the tools under development at Lockheed Martin’s new site will be HenosisTM, the company’s prototype for the U.S. Air Force’s Unified Platform. “We’ve seen a significant increase in the cyber mission and demands from our customers,” adds Viergutz. “We are counted on to address the most complex offensive and defensive challenges that our customer faces.” CNF Technologies, founded in San Antonio in 2005, is opening its second facility at the port. One of the city’s largest software developers and fastest-growing cybersecurity providers, CNF Technologies primary clients are government agencies, law enforcement and counterintelligence operations. “Everybody that has a computer on their desk has to worry about an adversary exploiting vulnerabilities,” explains CNF Technologies Principal Fred Ramirez. “We have a spectrum of services that we provide, such as reverse engineering, certification accreditation and penetration testing. And our personnel is also co-located with our clients as they monitor the military’s largest networks.” “We have a niche in cybersecurity,” adds CEO Roxanne Ramirez. “That’s all we do.” Recently, CNF Technologies partnered with the University of Texas at San Antonio (UTSA) as the institution establishes its National Security Collaboration Center (NSCC), which will advance research, education and workforce development in cybersecurity, data analytics and cloud computing. Along with the Port, the NSCC is a vital cog in bolstering the region’s status as a tech and cyber epicenter. “Everybody that has a computer on their desk has to worry about an adversary exploiting vulnerabilities. ” — Fred Ramirez, Principal, CNF Technologiesby GARY DAUGHTERS When the pandemic arrived, Texas A&M was ready to saddle up. Riding to the Rescue B I O TE C H NOL O G Y The Texas A&M Center for Innovation in Advanced Development and Manufacturing is a medical R&D facility tailor made for the times. One of only three such public-private partnerships established under the auspices of the U.S. Department of Health and Human Services, the Center is charged with accelerating research and development of vaccines and therapeutics for rapid production during pandemics and other national emergencies. As such, CIADM is playing a critical role in global battle against COVID-19. In January 2021, CIADM its long- time partner, FUJIFILM Diosynth Biotechnologies, announced the start of production of a COVID-19 vaccine candidate with the support of the U.S. government’s Operation Warp Speed. FUJIFILM Diosynth is manufacturing the NVX-CoV2373 vaccine of Maryland-based Novavax in support of Phase III clinical trials. A university spokesman says the Center is producing a second candidate vaccine in conjunction with the French pharmaceutical giant, Sanofi. The federal government first reserved space at the facility in July 2020 by tapping into its agreement with the CIADM, which oversees the largest scale-out cell culture manufacturing plant in the U.S. Moving swiftly, FUJIFILM Diosynth accelerated a planned capacity expansion and added 260 positions, thus doubling its local workforce. “Our team has worked around the clock since July and we’re starting to see light at the end of the tunnel,” said Dr. Gerry Farrell, Chief Operating Officer, FUJIFILM Diosynth Biotechnologies, Texas. “There is great pride and satisfaction on our team for being part of the solution to the pandemic. We are pleased to bring our technical expertise and world-class facilities to support the mission of Operation Warp Speed in bringing a safe and effective vaccine to the world.” 72 TE X A S E C ONOMI C D E V E L OP ME NT G U I D E Photo: Getty ImagesThe Center is also part of the Public Health Preparedness and Response initiative that has been established at the Texas A&M Health Science Center (TAMHSC). As such, when the pandemic arrived, A&M was ready to join the fight. “The Texas A&M System is proud to be part of this unprecedented manufacturing effort,” said John Sharp, Chancellor of The Texas A&M System. “Our partnership with FUJIFILM Diosynth Biotechnologies confirms the importance of the CIADM program for Texas, the nation and the world.” Texas Joins the Race to Build Capacity With the COVID pandemic having shone exposed a national shortage of drug manufacturing capacity, another new project involving CIADM takes on outsized importance. Matica Biotechnology, new partner of the Center and a contract development and manufacturing organization, broke ground in February 2021 on a new production facility. Matica specializes in clinical and commercial production of cell and gene therapies. “The global demand for virus products continues to outpace the capacity for production under the stringent practices required by regulatory agencies for human use,” said Matica Bio CEO Byung Se So, at groundbreaking. “Our new facility will help to close that gap by establishing state-of-the- art, modular virus production cleanrooms integrated with the latest vector technologies to maximize speed, flexibility and efficiency throughout our clients’ product development cycle.” So heaped praise on the biotech cluster that has steadily arisen around Texas A&M. “The Brazos Valley area, including College Station, is rapidly becoming one of the most important centers of biotechnology in the country, and it was an easy decision for our company to locate here. The availability of a skilled workforce along with the influence of the Texas A&M University System, will support the level of rapid job growth that we expect throughout the next few years.” Matica’s 25,000-square-foot facility in College station is to house virus production suites, development laboratories and offices. It is designed for the rapid development, scale-up and production of 74 TE X A S E C ONOMI C D E V E L OP ME NT G U I D ELentivirus and AAV products for clinical supply. An affiliate of CHA Biotech, Matica provides viral vector GMP manufacturing services for cell and gene therapies, vaccines, oncolytic vectors and other advanced therapy products. Separately, the CIADM also works closely with Zoetis, Inc., a global animal health company, and iBio Inc., a plant-based biotech innovator and contract manufacturing organization. Like Matica Bio and FUJIFILM Diosynth, Zoetis and iBio have invested in manufacturing centers near the Texas A&M campus. An All-Around Leader As home to more than 4,000 life sciences firms, and with more than 100,000 workers employed in the field, Texas is one of the leading life sciences states in the country. Top Fortune 500 companies such as Kimberly-Clark and Celanase are based in Texas. Other global leaders with operations in Texas include McKesson, Galderma, Novartis, Abbott, Allergan, Lonza, Johnson & Johnson and Medtronic. The state has also become a leader in medical device manufacturing, with industry leaders including Abbott Laboratories, Agilent Technologies, Baxter International, Becton Dickinson, CareFusion, GE, Johnson & Johnson, Medtronic St. Jude Medical and Stryker sharing a presence in the Lone Star State. The Texas Medical Center (TMC) is the world’s largest medical complex, and is also home to the world’s largest children’s hospital — the Texas Children’s Hospital — and the world’s largest cancer hospital — MD Anderson Cancer Center. Since opening in 1945, TMC has been at the forefront of advancing life sciences through pioneering patient care, research, education and prevention. Texas A&M is currently is building a half-billion-dollar health sciences complex at TMC. The $546 million complex includes $145 million toward the purchase and renovation of the 18-story “EnMed” building, as well as $401 million in private-sector funding to build two new towers adjacent to the EnMed structure. “The Brazos Valley area, including College Station, is rapidly becoming one of the most important centers of biotechnology in the country. ” — Byung Se So, CEO, Matica Bio TE X A S E C ONOMI C D E V E L OP ME NT G U I D E 7576 TE X A S E C ONOMI C D E V E L OP ME NT G U I D E Waves of tech leaders from the West Coast are cascading on the Lone Star State. TE C H NOL O G Y When the company that started it all in Silicon Valley announces its plans to relocate its headquarters to Texas, it’s time to take notice. In December, Hewlett Packard Enterprise (HPE) announced plans to relocate its global headquarters from San Jose, California, to Spring, a Houston suburb. The company began constructing a new, state-of- the-art campus at the beginning of the year. HPE already has a significant presence across Texas, with locations in Austin, Plano and Houston — the latter of which is home to more than 2,600 employees and is the company’s largest employment hub. HPE currently operates significant product development, services, manufacturing, and lab facilities in Houston and Austin. HPE noted the company’s already extensive presence in Houston, its diverse talent base, and anticipated cost saving as the reasons Houston was selected for the relocation. Compared to coastal states, Texas offers significant savings and no corporate income tax. The state’s highly innovative technology ecosystem and deep, hardworking talent pool make an ideal home base for tech firms. “We are excited that Hewlett Packard Enterprise has chosen to call Texas home, and I thank them for expanding their investment in the Lone Star State by relocating their headquarters to the Houston region,” said Governor Greg Abbott. “Hewlett Packard Enterprise joins more than 50 Fortune 500 companies headquartered in the Lone Star State, including 22 in the Houston area alone. That is because Texas offers the best business climate in the nation. Our low taxes, high quality of life, top-notch workforce, and tier-one universities create an environment where innovative companies like HPE can flourish. We look forward to a successful partnership with HPE, as together we build a more prosperous future for Texas.” HPE’s headquarters will be located on a new state-of-the-art campus, expected to open in early 2022. HPE already has a significant presence across Texas, with locations in Austin, Plano and Houston — the latter is home to more than 2,600 employees and is the company’s largest employment hub. “As we look to the future, our business needs, opportunities for cost savings, and team members’ preferences about the future of work, we are excited to relocate HPE’s headquarters to the Houston region,” said Antonio Neri, CEO of HPE. “Houston is an attractive market to recruit and retain future diverse talent and where we are currently constructing a state-of-the-art new campus. We by SAVANNAH KING Tech Leaders Rush to Texas Tech Leaders Rush to TexasTE X A S E C ONOMI C D E V E L OP ME NT G U I D E 77 look forward to continuing to expand our strong presence in the market.” From the Valley to the Hills Austin — AKA “Silicon Hills” — is home to a robust technology base with longtime tech companies like Dell Technologies, IBM, Apple, Samsung and Microsoft. Recent years have brought sizable government operations to the region, including the Army Futures Command Post. Tech firms continued to head for the hills in 2020, as work-from-home orders have changed the professional landscape. In December, Oracle relocated its corporate headquarters to Austin from Redwood City, California, to implement a more flexible employee work location policy, according to the company. “Oracle is a global technology giant with an already strong presence here in Texas, and we are proud to welcome its headquarters to Austin,” said Gov. Greg Abbott. “While some states are driving away businesses with high taxes and heavy-handed regulations, we continue to see a tidal wave of companies like Oracle moving to Texas thanks to our friendly business climate, low taxes, and the best workforce in the nation. Most important of all, these companies are looking for a home where they have the freedom to grow their business and better serve their employees and customers, and when it comes to economic prosperity, there is no place like the Lone Star State.” FileTrail, the leader in next-generation information governance and records management software for law firms and highly regulated industries, announced it too would move its headquarters to Austin. The relocation is primarily due to FileTrail’s growth, including the need to accommodate its recently expanded team. FileTrail’s new headquarters is in the up- and-coming area of East Austin. The company is leasing a space twice the size of its previous office in San Jose, California, FileTrail’s home for its first 20 years in business. The new space better accommodates the company’s growing staff, already nearly double what it was a year ago, and is suited for anticipated additional expansion in the coming months and years. “The year 2020 marks more than just FileTrail’s 20th in business; this is also the start of an exciting new chapter for our company,” says FileTrail CEO Darrell Mervau. “While the greater Bay Area will always be a special place for the FileTrail family, our recent growth prompted the need to explore options for a larger headquarters. Our new location is a great fit for our expanding team and affords us much-needed flexibility for continued growth. We are grateful to the Austin community for already making us all feel welcome.” Houston skyline Photo: Getty ImagesNext >