< Previous116 TEXAS ECONOMIC DEVELOPMENT GUIDE AEROSPACE & DEFENSE F rom commercial aviation to space exploration to defense to maintenance, repair and overhaul, Texas’ aerospace industry soars to new heights each year. Among the state’s recent accolades is its first place showing in PwC’s 2022 Aerospace Manufacturing Attractiveness Rankings that are based on several categories, including infrastructure, tax policy, labor and economy. Nearly 2,000 aerospace establishments employ a combined roughly 140,000 Texans who earn $98,000 annually on average. The PwC report notes that Texas is home to 18 of the world’s top 20 aerospace manufacturers. These include Boeing, Airbus, Gulfstream and Bell. Defense- related aerospace players include Raytheon, Lockheed Martin and BAE Systems. Star gazing? Elon Musk’s SpaceX, which recently moved its headquarters from Delaware to Texas, is reportedly expanding its SpaceX South Texas launch site near Brownsville. And it operates an engine-testing facility in McGregor, midway between Dallas and Austin. Rural Van Horn, in Culberson County, east of El Paso, is the location of Blue Origin’s spacecraft launch site. FAA-licensed spaceports are operating in Midland and Houston, the latter being home for decades to NASA’s Lyndon B. Johnson Space Center. In March, Texas Governor Greg Abbott launched the Texas Space Commission to ensure the state remains a leading location for space exploration and development for generations to come. “Since its very inception, NASA’s Johnson Space Center has been home to manned spaceflight, propelling Texas as the national leader in the U.S. space program,” said the governor at an event announcing the Commission’s Board of Directors. “It was at Rice University where President John F. Kennedy announced that the U.S. would put a man on the moon — not because it was easy, but because it was hard. Now, with the Texas Space Commission, our great state will have a group that is responsible for dreaming and achieving the next generation of human exploration in space. Texas is the launchpad Commission Aims to Keep Texas The Space Industry’s Launchpad by MARK AREND Firefly Aerospace’s Rocket Ranch in Briggs, Texas Photo courtesy of Firefly AerospaceTEXAS ECONOMIC DEVELOPMENT GUIDE 117 for Mars, innovating the technology that will colonize humanity’s first new planet. As we look into the future of space, one thing is clear: Those who reach for the stars do so from the great state of Texas. I look forward to working with the Texas Space Commission, and I thank the Texas Legislature for partnering with industry and higher education institutions to secure the future of Texas’ robust space industry. Ecosystem Heavyweight In February, Texas A&M University and NASA announced plans to build a facility for human spaceflight and research and development at Exploration Park, a 240-acre site at Johnson Space Center. “For more than 60 years, NASA Johnson has been the hub of human spaceflight,” said NASA Johnson Director Vanessa Wyche at the announcement. “Exploration Park will be the next spoke in the larger wheel of a robust and durable space economy that will benefit not only exploration of the Moon, Mars and the asteroids, but all of humanity as the benefits of space exploration research roll home to Earth.” Texas A&M is a significant player in the state’s space industry ecosystem, with more than 300 space-related projects currently under way at more than a dozen locations in the university’s system statewide. Funding awards from NASA and other government agencies have exceeded $25 million annually for the past five years. In August 2023, Texas A&M’s Board of Regents announced the creation of the Texas A&M Space Institute near the Johnson Space Center, where a $200 million facility will be built to support aeronautics research, advanced robotics and mission training, among other areas. “The Texas A&M Space Institute will make sure the state expands its role as a leader in the new space economy,” said John Sharp, chancellor of the Texas A&M System, announcing the Institute. “No university is better equipped for aeronautics and space projects than Texas A&M.” Two hours northeast of San Antonio, in rural Briggs, space transportation company Firefly Aerospace recently more than doubled the size of its Rocket Ranch complex where it produces the Northrop Grumman Antares 330 and the Medium Launch Vehicle that the two companies are co-developing. The expansion includes new test stands, bringing the total to six, and facilities for rocket production, assembly and integration, according to the company. Firefly Aerospace also has expanded its headquarters and mission operations centers in Cedar Park, it notes, to support a growing number of launch, lunar, and on-orbit missions. T he Dallas-Fort Worth metroplex is one of the fastest growing areas in the nation. Home to 24 Fortune 500 companies and over 62,000 businesses, the DFW on average has added more than 100,000 new jobs per year since 2013, according to the Dallas Regional Chamber (DRC). While industries such as technology, financial services and manufacturing thrive throughout the area, the metro’s efforts to bolster its biotechnology sector are paying off in a major way. In February 2023, the DRC announced a new economic development campaign to recruit more life sciences and biotech companies to Dallas-Fort Worth. In addition to releasing a multimedia marketing campaign, the DRC created a research and data- driven website, Life Science Converging in DFW, outlining the area’s real estate, talent, costs and incentives and other enticing attributes. Dallas snares a major win months after launching a campaign to attract more biotech companies. by LINDSAY LOPP From Strategy to LIFE SCIENCES & BIOTECH Success 118 TEXAS ECONOMIC DEVELOPMENT GUIDE Photo: Getty Images“ This news confirms what the Dallas Regional Chamber has known and worked toward for some time now: The Dallas Region is becoming a powerhouse for life sciences and biotechnology innovation. ” — Dale Petroskey, President and CEO, Dallas Regional Chamber Photo: Getty ImagesTEXAS ECONOMIC DEVELOPMENT GUIDE 121 “This is a moment in time of true industry convergence, right now and right in our backyard,” said Dale Petroskey, president and CEO of the DRC. “From our highly skilled workforce and industrial infrastructure to our central location and low cost of doing business, our region today has become a hub for these industries of tomorrow, and that’s very exciting.” Reaping the Rewards Only seven months after the campaign launched, the Advanced Research Projects Agency for Health (ARPA-H), a new agency within the U.S. Department of Health and Human Services (HHS), selected Dallas as one of three regional hubs to lead a nationwide health innovation network. In collaboration with the hubs in Cambridge, Massachusetts, and Washington, D.C., the Dallas location will work to develop “game-changing breakthroughs” in the prevention, detection and treatment of cancer, Alzheimer’s, diabetes and other diseases. Dallas has been designated the Customer Experience Hub and will take a proactive approach in diversifying clinical trials and connecting with representative patient populations. “ARPA-H has an enormous opportunity and responsibility to improve the well-being of all Americans,” said ARPA-H Director Renee Wegrzyn, Ph.D. in a statement. “Through this nationwide hub-and-spoke network, ARPANET-H will enable ARPA-H to create breakthrough capabilities and achieve health outcomes for everyone that are accessible, tangible, and measurably better. Regardless of location, ARPA-H funding will support the best and brightest ideas across the country, with opportunities for universities, companies, and non-traditional performers.” Located at Pegasus Park, a 23-acre life sciences campus, and in close proximity to the UT Medical District, the Dallas hub is surrounded by a growing list of potential partners and resources. In February, Children’s Health and UT Southwestern Medical Center unveiled plans for a new $5 billion pediatric health campus. The 2 million sq.ft. campus will provide pediatric services as well as support academic research, training and the development of lifesaving technologies. “This news confirms what the Dallas Regional Chamber has known and worked toward for some time now: The Dallas Region is becoming a powerhouse for life sciences and biotechnology innovation,” said Petroskey in a press release. “Bringing this hub to Pegasus Park takes this to the next level and will bring many more job opportunities to the Dallas Region. The Dallas Regional Chamber is very excited about this win, and we will do everything possible to support the success of this great opportunity.” UT Southwestern William P. Clements Jr. University Hospital in Dallas Photo courtesy of UT Southwestern Medical Center 122 TEXAS ECONOMIC DEVELOPMENT GUIDE INVESTMENT PROFILE: ROUND ROCK, TEXAS On the Semiconductor Front Lines Industry experience proves to be vital in Round Rock. T here’s a reason international semiconductor industry leaders continue to give credence to the Central Texas city of Round Rock. Simply put: The city is not playing from behind. A key pull to obtaining foreign direct investment in Round Rock is the leadership’s willingness to show companies the advantages of doing business in Texas. To appeal to manufacturers, toting one of the lowest property tax rates in the state alongside no state income tax is always a good starting point. Innovative manufacturing has found its footing in the Austin- Round Rock metropolitan area, employing over 62,000 in the region to date. For decades this has drawn automotive, life sciences, semiconductor, defense and clean- tech companies who depend on a wide array of skilled talent. Today the semiconductor industry in particular is taking a keen interest in new developments within the city of Round Rock and region. “Our job as a city is to create the economic environment,” says Round Rock Mayor Craig Morgan. “Having the semiconductor industry playing such a prevalent role in Central Texas, I think Round Rock has already positioned itself to continue those successes without having to go through the growing pains.” A Long-Awaited Arrival Over the past four years, the state has drawn 59 major new or expansion semiconductor- related manufacturing projects as calculated by Site Selection’s Conway Projects Database. Of those, 22 of those projects landed in the Austin-Round Rock metropolitan area and two projects located within 25 minutes of the city in Taylor, Texas. Among the region’s suite of investors are global industry leaders Samsung, Micron Technology, NXP and Applied Materials. The inevitable influx of manufacturers investing in operations around the nation is no surprise following the implementation of the federal CHIPS and Science Act. But, for a semiconductor equipment part cleaning and coating company like KoMiCo Technology, the rise of investment in Central Texas is not by chance. KoMiCo is expanding on its 17-year presence in Central Texas. Photos courtesy of KoMiCo by ALEXIS ELMORETEXAS ECONOMIC DEVELOPMENT GUIDE 123 THIS INVESTMENT PROFILE WAS PREPARED UNDER THE AUSPICES OF THE ROUND ROCK CHAMBER. FOR MORE INFORMATION, VISIT WWW.ROUNDROCKCHAMBER.ORG. South Korea- based KoMiCo brought its first U.S. location to Round Rock in 2007, servicing the likes of Samsung, Intel, Micron, Texas Instruments and NXP. The company’s U.S. President James Jin says that Texas was the prime location to enter and support the market long term, and choosing a site near Samsung’s manufacturing facility in Austin was a strategic move. “We built here and we penetrated all of the U.S. market after that,” says Jin. “It looks like this area is now considered the next Silicon Valley. All of the semiconductor customers are coming to Austin and continuously expanding. The future major semiconductor area is Texas. That’s what we believe.” The company is 70% finished with a $30 million expansion (right) set to be complete in May 2024. The investment will add an additional 40,000 sq. ft. to the company’s existing 62,000-sq.-ft. facility. Informed by customer needs, Jin states, the company will look to make further investments in 2025 based on infrastructure and processing room. “Companies like ours need semiconductor clusters to survive,” says Jin. “That’s why KoMiCo has been thriving as of late. Our facility operates like an extension of a fab, we require a lot of the same things. When companies like Samsung and Intel are doing site selection, they’re looking for the same things — infrastructure, workforce development, universities, taxes — and Round Rock was a good place to land for those reasons.” That industry cluster is indisputable as expansion projects isn’t the only resident supplier gearing up for Toppan Photomasks Round Rock Inc. has supplied the semiconductor industry with its photomask technology. After a global site search to cater to increased demand, the company decided in 2023 to move forward with a $185 million expansion to modernize its existing facility in Round Rock. The growing cluster also has drawn new foreign supplier investment, further diversifying the supply chain in the process. MSS International announced in December 2023 that Round Rock was selected as the location of its U.S. headquarters. As a key supplier of gas sensor and piping used by Samsung, the company noted that the city’s pro-business climate and proximity to Samsung’s $17 billion Taylor facility sealed the deal. “It’s been over 20 years since Dell Technologies put us on the map with their headquarters here,” says Mayor Morgan. “And what we’ve done is got out of businesses’ way by not overregulating, a low tax environment, we’re business friendly, great schools and great quality of life. Right now, I think all this growth speaks for itself.” The Ideal Location That growth is supported by a city that appeals to a live-work-play lifestyle. Site Selection’s Top Metros of 2023 data show that among the Top 10 U.S. metropolitan areas, Austin-Round Rock ranked No. 3 in the South Central region and No. 7 within the Tier 1 Metros Per Capita nationally for two years in a row. The city’s central location in the state offers companies access to 65% of the state’s population within a three- hour drive, in addition to a talent pool of over 2.2 million encompassing the entire Austin-Round Rock metro. Investment announcements have brought thousands of jobs to the region. With institutional assets like Austin Community College, Texas State University and Texas State Technical College, companies have direct access to build educational partnerships that aim to train or retrain talent based on current industry needs. As Round Rock continues to check all the boxes leading semiconductor companies are looking for with no sign of slowing down, the city soon could represent a one-stop-shop for all of the industry’s needs. One might call that ecosystem simply fab-ulous . KoMiCo nears completion of its expansion in Round Rock. Photo courtesy of KoMiCo Technology USA124 TEXAS ECONOMIC DEVELOPMENT GUIDE AGRICULTURE T exas has millions of reasons to make meat lovers happy. According to the National Cattlemen’s Beef Association, 4.69 million beef cows graze the Texas plains. That’s tops in the nation, more than twice as many as second-ranked Oklahoma, and nearly 14% of the U.S. total. The King Ranch between Brownsville and Corpus Christi, the country’s biggest cattle ranch, spans 825,000 acres —an area larger than Rhode Island — and boasts a cattle population of 35,000. All that beef is opening opportunities for processors, and Producer Owned Beef — owned by cattle producers and operated by King of the Hill No beef about it, Texas is tops for farms and ranches. by GARY DAUGHTERS No state comes close to Texas for beef cattle. Photo from Getty Images/DawnKeyNext >