< Previous104 TEXAS ECONOMIC DEVELOPMENT GUIDE UPPER EAST TEXAS With industries spanning health care, manufacturing, logistics and technology, Upper East Texas offers a winning combination of opportunity, connectivity and talent. Tyler, as the region’s educational epicenter, plays a key role in fueling innovation and workforce development. The city is home to three universities, each contributing to the growing business ecosystem. The University of Texas at Tyler stands out with its top-100 engineering program, providing a steady stream of highly skilled graduates in engineering, business and health sciences. This academic prowess, coupled with the university’s expanding research initiatives, positions Tyler as a hub for technology and industrial growth. Texas College adds valuable diversity to the region’s educational offerings, preparing students for careers in business, education and the arts. Additionally, Tyler Junior College (TJC) provides practical, career-focused training, offering certifications in fields like health care, IT, welding and automotive technology. TJC ensures that local industries have access to a steady pipeline of qualified talent to meet their evolving needs. Tyler’s proximity to Dallas, just a two-hour drive away, is another major advantage for businesses. It allows companies to tap into the vast markets of the larger metro area while benefiting from the charm and lower costs of a smaller city. Not far to the northeast, Texarkana leverages its unique position straddling the Texas- Arkansas border to provide companies with a prime location for access to both state markets, as well as broader Southeast and Central U.S. regions. The city’s location along major transportation TEXAS ECONOMIC DEVELOPMENT GUIDE 105 corridors like Interstates 30 and 49 makes it a natural hub for logistics and distribution, offering businesses strategic connectivity to key national markets. Texarkana is not only a transportation hub but also a growing center for commerce and industry. The city’s low cost of living, coupled with its central location, makes it a favorable environment for businesses seeking operational cost savings without sacrificing access to key markets. UPPER RIO GRANDE Strategically positioned along the U.S.-Mexico border and the Texas-New Mexico state line, the Upper Rio Grande region is a vital economic gateway, linking American and Mexican markets in a way few other areas can. El Paso, the region’s largest city, stands at the heart of this cross- border trade economy. With its long-standing history of robust commerce, El Paso has become a major hub for manufacturing, logistics and distribution. Its strategic location makes it a key player for industries such as automotive, electronics and medical devices, serving as a vital shipping point with direct access to markets across the West Coast, Midwest and Southeast. The region’s ability to tap into both global supply Lake Tyler is one amenity in the Tyler area, located halfway between DFW and the Louisiana state line. Photo: Getty Images106 TEXAS ECONOMIC DEVELOPMENT GUIDE chains and a workforce that spans the U.S.-Mexico border makes it an ideal place for manufacturers looking to streamline operations and scale efficiently. The area’s appeal to investors is undeniable, with significant projects regularly bolstering its economy. A standout example is Schneider Electric USA’s recent announcement to modernize and expand its electric equipment manufacturing facilities in El Paso. This multi-million-dollar investment will create 300 new jobs and further solidify the city’s role as a leader in the manufacturing sector. Another notable player, Vinton Steel, a subsidiary of Japan’s Kyoei Steel, is investing $229 million to expand its advanced manufacturing facility in Vinton, a suburb of El Paso. This expansion will enable Vinton Steel to recycle over 250,000 tons of ferrous scrap annually, producing high-quality steel using electric arc furnace technology. The project is also supported by a $1.5 million Texas Enterprise Fund grant and a $12,000 veteran-created job bonus. Once complete, Vinton Steel is expected to create 180 new jobs, further demonstrating the region’s ability to attract global investment. SOUTHEAST TEXAS From bustling ports along the Gulf Coast to the sprawling forests inland, Southeast Texas is a region that thrives on its diversity. This dynamic blend of urban, industrial and natural spaces fuels industries like energy, transportation, forest products and tourism, all of which are key drivers of the local economy. Located just over an hour east of Houston, the Beaumont-Port Arthur area is a hotspot in the global trade network. With access to vital Guadalupe Mountains National Park Photo courtesy of Travel TexasTEXAS ECONOMIC DEVELOPMENT GUIDE 107 waterways, the region’s strategic position is further enhanced by three Foreign Trade Zones, offering unmatched connectivity for international and domestic commerce. Key highways, a regional airport and rail service from multiple Class I carriers ensure the area remains a bustling hub of logistical activity. But the Beaumont-Port Arthur area isn’t just about logistics — it’s also a powerhouse in the energy sector. The region is home to the world’s largest oil refinery, with industry giants like ExxonMobil, Motiva Enterprises and Valero maintaining a strong presence here. Southeast Texas is also home to some of the country’s most productive forests, including the Angelina, Sam Houston and Sabine National Forests, as well as the renowned Big Thicket National Preserve. These vast woodlands provide an abundance of timber that fuels a thriving forest products industry, with sawmills, paper mills and a host of wood-based manufacturing businesses calling the region home. Nacogdoches, known as the “Forest Capital of Texas,” plays a pivotal role in this thriving industry. Surrounded by the lush Angelina National Forest and a network of timber-rich lands, Nacogdoches has long been a hub for sawmills and timber processing. The presence of Stephen F. Austin State University, which offers a prestigious forestry program, ensures that the next generation of forestry professionals is well-trained and that innovative research in forest management continues to push the industry forward. This blend of natural resources and academic expertise solidifies Nacogdoches’ position as a central player in the regional and national forest products industry. Downtown Nacogdoches Photo courtesy of Travel Texas108 TEXAS ECONOMIC DEVELOPMENT GUIDE SOUTH TEXAS In South Texas, you can catch a sunrise over the desert, shop at bustling downtown centers, and enjoy a sunset on the Gulf — all in the same day. Covering nearly 52,000 square miles, this region offers everything from thriving cities and world-class industries to stunning landscapes. Stretching from the Texas-Mexico border to the Gulf Coast, South Texas is a place where commerce and culture go hand in hand, making it one of the most vibrant, diverse and business-friendly regions in the state. At the heart of South Texas lies its largest city, San Antonio. Known for its rich cultural history, including the iconic Alamo and the lively River Walk, San Antonio is also a major center for defense, health care and technology. The city’s booming tech scene and Downtown Riverwalk, San Antonio Photo courtesy of Travel TexasTEXAS ECONOMIC DEVELOPMENT GUIDE 109 strong presence in cybersecurity and medical research are driving economic growth, while its proximity to the U.S.-Mexico border keeps it well-connected to international markets. Just a short drive south, McAllen thrives as a commercial hub, with its booming retail trade and rapid economic growth, particularly in logistics and international commerce. Along the Gulf Coast, Corpus Christi stands as a major player in the oil, gas and petrochemical industries. Home to one of the largest U.S. ports, Corpus Christi serves as a critical point for energy exports, making it a linchpin in the region’s economy. Further west, Laredo, the largest inland port in the country, serves as a vital connection for goods moving between the U.S. and Mexico, solidifying its role as a gateway city for trade. Higher education institutions like The University of Texas at San Antonio and The University of Texas Rio Grande Valley are helping to cultivate a highly skilled workforce, ensuring the region remains competitive in a fast- evolving economy. But South Texas isn’t just about business — it’s also about the beauty of its landscapes. From the coastal shores of Corpus Christi to the rolling hills of the Hill Country, the region is a verified paradise. The Hill Country is home to scenic wineries, clear springs and charming small towns, while the Gulf Coast offers pristine beaches and birdwatching hotspots like Padre Island National Seashore. Whether you’re looking to grow a business, explore nature or simply enjoy a rich cultural experience, South Texas offers it all. Bob Hall pier on Padre Island at sunset Photo by Heather OvermanNew 5-year strategic plan lays out blueprint for sustainable economic success. Building a Bigger, Better Texas 110 TEXAS ECONOMIC DEVELOPMENT GUIDE PREPARING FOR THE FUTURE by RON STARNER Gov. Greg Abbott meets with top Toyota executives at the Toyota Commemorative Museum of Industry and Technology. Photo courtesy of the Office of the Governor W hen Gov. Greg Abbott delivered his annual State of the State Address to the people of Texas on February 2, he noted the many accolades that the Lone Star State has received during his time in office. “Texas is the most powerful economy in America,” he said. “Ranked as the best state for doing business for 20 years, Texas is No. 1 for most new jobs, No. 1 for economic development and No. 1 as the best state to start a new business.” What you did not hear the governor say, however, is that it is now time for Texas to pause and wait for the rest of the states to catch up. In fact, Gov. Abbott stated the exact opposite. “Texas is the 112 TEXAS ECONOMIC DEVELOPMENT GUIDE “ Texas is the blueprint for America’s future. But we know that more must be done to ensure that prosperity reaches every Texas family and every Texas business. ” — Greg Abbott, Texas Governor The Historic Sixth Street Mural is a popular selfie spot in Austin. Photo courtesy of Visit Austin blueprint for America’s future,” he said. “But we know that more must be done to ensure that prosperity reaches every Texas family and every Texas business. That’s why I created the Small Business Freedom Council to require all state agencies to slash rules, fees and regulations. It’s why we will keep state spending below constitutional limits and why we must cut your taxes.” Gov. Abbott pledged in his State of the State Address to provide at least $10 billion in new property tax relief to Texans. He also promised to make housing more affordable, improve health care for all Texans and ensure access to plentiful water supplies for every community in Texas. “Our rapidly growing state also needs an increasing supply of electric power,” Gov. Abbott said as he called for Texas to add even more energy to the grid after he signed into law a bill adding 10 gigawatts of new power supply for Texans. But Texas is not stopping there. Rather, the state is pushing forward with a bold new five-year strategic plan titled “Bigger. Better. Texas.” Adriana Cruz, executive director of the Texas Economic Development & Tourism Office, said the goal of the plan is simple and straightforward: “Economic development is a team sport. That’s exactly why we have developed this statewide economic development strategic plan with the broader economic development ecosystem in mind. I invite you to join us in our mission to further cement Texas’ position as a global economic powerhouse and ensure our state remains the very best place to live, work and visit.” The plan is the result of a year- long collaboration with state agency partners, business and TEXAS ECONOMIC DEVELOPMENT GUIDE 113 community leaders, economic development organizations and industry associations. The plan is “our blueprint for continued economic prosperity,” Cruz said. Under the leadership of Abbott and Cruz, the plan: • Establishes a unifying vision for the future Texas economy. • Identifies new target industry sectors and clusters that are expected to drive economic growth and job creation. • Outlines objectives and initiatives to advance state competitiveness. • Provides data and recommendations to inform economic development decisions statewide. Cruz says the plan addresses four core areas: business and industry; innovation and entrepreneurship; workforce; and infrastructure. The executive summary of the Next >