< Previous114 TEXAS ECONOMIC DEVELOPMENT GUIDE The Texas CHIPS Act sets aside $698.3 million in state funds to support semiconductor research, manufacturing and design projects. plan reveals the landscape of the Texas economy as it performs today, outlines steps the state needs to take to build on its momentum and competitiveness to keep winning in the future and lays out the case for a holistic approach to economic development. The targeted industry sectors and clusters include: • Advanced Manufacturing: aerospace, aircraft, defense, automotive, computers, electronics, semiconductors, production technology and heavy machinery. • EnergyEvolution: electric power generation and transmission; oil and gas extraction; and renewable energy. • FoodandLivestock Products: food processing and livestock processing. • Hospitality,Tourismand Culture: film, music, culture, hospitality and tourism. • InformationTechnology: IT and artificial intelligence. • LifeSciencesand Biotechnology: biotech, pharmaceuticals, medical devices, agricultural science and technology. • PetroleumRefiningand Chemicals: industrial chemical products; petroleum refining; and plastics. • ProfessionalServicesand CorporateOperations: business services; corporate headquarters; and financial services. • RareEarthElementsand MineralMining: metal mining; non-metal mining. • Transportationand Logistics: distribution; e-commerce; transportation and aviation services. Finally, the governor and his leadership team took steps recently to shore up several pivotal state incentive programs to attract jobs and industry. These include the Texas Enterprise Fund (TEF), the Texas Semiconductor Innovation Fund (TSIF) and the Texas Jobs, Energy, Technology and Innovation TEXAS ECONOMIC DEVELOPMENT GUIDE 115 The Texas State Capitol in Austin is lit up for the annual Holiday Stroll & Singalong. Photo courtesy of Visit Austin (JETI) program. Here is an overview of each: Texas Enterprise Fund TEF is a deal-closing grant awarded to companies considering a new project for which one Texas site is competing with other out-of-state sites. The grant is a performance-based financial incentive for companies that contribute large amounts of capital investment and create a large number of new jobs. Qualifying firms must create at least 75 full- time jobs in an urban area or 25 full-time jobs in a rural area. Each applicant must undergo a rigorous 11-step due diligence screening process to make sure the company meets all criteria set forth by the state. Texas Semiconductor Innovation Fund TSIF is a new incentive program that promotes semiconductor research, design and manufacturing in the state. TSIF was established in June 2023 when Abbott signed into law the Texas CHIPS Act, which established the new incentive as well as the Texas Semiconductor Innovation Consortium (TSIC). The Legislature appropriated $698.3 million to TSIF. TSIF provides grants and matching funds to eligible entities for semiconductor research, manufacturing and design projects. Texas Jobs, Energy, Technology and Innovation The JETI Act is a new competitive economic incentive program used to attract large, capital-intensive economic development projects that bring high-wage jobs in advanced industries to Texas communities. The JETI program provides qualifying projects a taxable value limitation on the local school district portion of the property tax, if they meet certain threshold requirements. In large counties of 750,000 or more in population, the qualifying firm must make a minimum investment of $200 million. In counties of 250,000 to 749,99 people, the minimum investment required is $100 million. In counties of 100,000 to 249,999 people, the threshold is $50 million. In counties of 99,999 or fewer people, the threshold is $20 million. W hile other cities see businesses come and go, the City of Terrell offers something different, a community where companies find lasting success. In a world where relocation and rapid growth often seem like the key to business survival, Terrell has become a rare example of a place where staying put is the winning strategy. Some companies have been in Terrell for decades, centuries even, expanding steadily and finding everything they need to foster continuous growth. Madix Inc. and Oldcastle BuildingEnvelope have been anchored in Terrell for over 45 years, Nucor Building Systems for 25, and American National Bank of Texas (ANBTX) has been there the longest, an impressive 150 years. “Terrell is home for ANBTX much like all of us as individuals have a home,” says Robert Messer, ANBTX Senior Executive Vice President and Chief Strategy Officer. “A bank can only prosper if the communities where it is located prosper. Terrell has provided a progressive business climate, and the bank has been able to partner with many individuals and businesses to achieve mutually beneficial objectives.” Just as Terrell has evolved from Why companies choose to stay and grow in this Texas city. by LINDSAY LOPP Long-term Success Starts in Terrell 116 TEXAS ECONOMIC DEVELOPMENT GUIDE INVESTMENT PROFILE: TERRELL, TEXAS Nucor Building Systems is one of many companies that have called Terrell home for decades. All photos courtesy of Terrell EDC TEXAS ECONOMIC DEVELOPMENT GUIDE 117 a small community into a dynamic city, ANBTX has grown alongside it. From its humble beginnings as a single bank, ANBTX has expanded to over 25 branches since 1875, now managing more than $5.5 billion in assets. Its remarkable expansion reflects the steady, decades-long growth of Terrell itself. Terrell’s home base, Kaufman County, is not only the No.1 fastest growing county in Texas, but in the entire country. Since 2020, its communities have welcomed over 50,000 new residents. “Business is booming in Terrell!” says ANBTX Banking Center President and Senior Vice President Tori Lucas. “We are seeing growth in retail, manufacturing, business services, distribution, construction, and more. Terrell, thankfully, has known the tidal wave of growth was on its way for the past 10+ years, so community leadership has had time to create and execute a thoughtful thoroughfare plan, economic development strategies, parks and downtown capital plan, and comprehensive plan, to name a few.” Why is Terrell on the Rise? Located just 30 miles east of Dallas, Terrell has always been perfectly positioned for growth. It’s a sweet spot for businesses and people who want to keep one toe in the big city while planting both feet in a tight-knit community. It’s close enough to Dallas for easy access to markets, resources and talent, but far enough away to enjoy a pace that doesn’t involve bumper to bumper traffic and a never-ending race to keep up. Situated along major highways like I-20 and US Highway 80, it offers seamless transportation links to key cities and regions. With proximity to the Dallas-Fort Worth International Airport and a robust Terrell is committed to growing a strong, job-ready workforce.118 TEXAS ECONOMIC DEVELOPMENT GUIDE rail system, companies can ship products, move goods, and access distribution networks quickly and efficiently, all without the overhead costs of operating within a large metro area. This combination of connectivity and cost-effectiveness makes Terrell a logistics hub in its own right offering businesses the best of both worlds. Access to major markets and the advantages of a smaller community. Although, what truly sets Terrell apart is its ability to combine economic opportunity with a strong sense of community. In a place where collaboration and relationships still drive progress, businesses find not just a location, but a partner in growth. The Terrell Economic Development Corporation (TEDC) plays a key role in this effort, working hand-in-hand with companies to support their goals. One of the ways Terrell nurtures this connection is by creating space for open dialogue and shared problem-solving. A prime example is a weekly meeting held with various members of local leadership, where business owners, city officials, and community leaders come together to discuss opportunities, address challenges, and strategize on ways to support one another. Additionally, the TEDC hosts HR Roundtables, regular gatherings that bring together human resources representatives from over 20 local companies. “We’ll usually have a speaker come in,” explains TEDC President Carlton Tidwell. “And discuss topics anywhere from child care to safety issues, anything like that.” Participants also have the chance to connect directly with guest speakers, many of whom are valuable resources for obtaining industry certifications or enhancing workplace safety standards. These meetings don’t just provide information; they open doors. Businesses are thriving in strategically located Terrell — home to the world’s most famous gas station — Buc-ee’s.TEXAS ECONOMIC DEVELOPMENT GUIDE 119 “Then if the individual business needs something along any of those lines, we make those people available for them,” says Tidwell. “But the biggest thing is now all of the HR representatives get a chance to network with each other. That helps them solve issues by having an opportunity to speak with somebody that might be having the same issues they are or successes that they can share to help them.” Actions that Address Demand This level of connectivity and proactivity is exactly why companies remain rooted in Terrell. It’s the kind of place that not only listens to its business community but acts on what it hears. Terrell puts its money where its mouth is, investing in programs, partnerships and infrastructure that reflect the real needs of the companies who call it home. Terrell already boasts a robust and skilled workforce, with a population of 20,000 and access to Dallas’ talent pool, but as industries evolve, city leadership has recognized the need for different types of talent to meet the demands of a changing economy. To stay ahead of these shifts, the city has made workforce development a top priority. Terrell Independent School District (TISD) actively addresses the changing demands of the workforce by offering a wide range of Career and Technical Education (CTE) programs. These programs are carefully designed to prepare students for high-demand, high- wage, and high-skill occupations, ensuring they are equipped to meet the shifting needs of various industries. TISD’s CTE offerings cover a variety of fields, including business management and marketing, advanced manufacturing, robotics, welding, automotive, animal science, and audio/visual communications, among others. Local businesses actively participate in meetings with the TEDC, along with high school and school district administrators, to help shape and influence the development of these programs, ensuring that the curriculum remains relevant and aligned with industry needs. In partnership with Trinity Valley Community College (TVCC), TISD also offers dual credit technical courses, allowing students to earn both high school and college credits in selected CTE classes. Through these programs, students can advance their careers while simultaneously reducing the time and cost typically associated with earning a college degree. Building on its commitment to educational opportunities, Terrell has also shown proactive leadership in addressing the broader needs of the community. Just as the city works to help students advance their careers, it is also focused on addressing the national housing crisis. A major project, Northspur, is currently underway, bringing 1,500 new homes to Terrell on a 700-acre site. This development will offer not only a variety of housing options but also retail, a grocery store and a nature trail. A Partner in Progress Terrell’s commitment to growth ensures businesses, whether long-established or new, continue to thrive alongside the community. The city’s leadership creates an environment where companies are not just supported but encouraged to innovate and expand. With a focus on continuous infrastructure improvements, workforce development, and strong community ties, Terrell ensures that businesses have the resources and opportunities they need to succeed. THIS INVESTMENT PROFILE WAS PREPARED UNDER THE AUSPICES OF TERRELL ECONOMIC DEVELOPMENT CORPORATION. FOR MORE INFORMATION, PLEASE CONTACT CARLTON TIDWELL AT 972-563-5703 OR BY EMAIL AT CARLTON@TERRELLTEXAS.COM At the Terrell Economic Development Corporation’s HR Roundtables, HR professionals gather to exchange ideas and build stronger workplaces.120 TEXAS ECONOMIC DEVELOPMENT GUIDE INTERNATIONAL TRADE & FDI Waving the Flag: Texas Makes Its Case To the World In July 2024, Governor Abbott participated in the opening of the State of Texas Taiwan Office in Taipei. Photo courtesy of Office of the Governor by MARK AREND I t’s not fair to compare Texas with other states based on economic strength or as a destination for foreign direct investment (FDI). Compare it with countries, and there’s a contest. As an economic power, Texas ranks eighth globally with a 2023 GDP of $2.6 trillion, ahead of Canada, Russia and South Korea. It’s well ahead of other states as a recipient of FDI in recent memory and for the past 23 years has been the leading U.S. state for exports. Texas is the top exporting state to 92 countries and has led the nation 122 TEXAS ECONOMIC DEVELOPMENT GUIDE in semiconductor exports for 14 consecutive years and high-tech exports for 12 years. Nearly 2,200 foreign businesses have operations in Texas. Combined, these companies employ more than 600,000 workers, 194,700 of which work in manufacturing, according to the Global Business Alliance (GBA), which tracks FDI into the U.S. and on the state level. FDI jobs represent 6% of total employment in Texas, the highest percentage of its bordering states. GBA reports that FDI employment in Texas grew 41% from 2012 to 2022 while overall private-sector employment grew 26% during that time. The Governor’s Texas Economic Development & Tourism Office reports 1,860 foreign investment projects in Texas in the past decade with a combined capital investment value of almost $190 billion. Texas’ FDI prowess is due to several factors including its 35 foreign trade zones, the most in the country; 12 deepwater ports, including Port Houston, the leading port for water-borne foreign trade; and 25 commercial airports, three of which are major airline hubs: United Airlines at George Bush Intercontinental in Houston, American Airlines at Dallas Fort Worth International and Southwest at Dallas Love Field. Houston’s Banner Year One way to gauge the Lone Star State’s appeal as a location for foreign investment is on the metro level. The 2023 FT-Nikkei Investing in America ranking is a good place to start. Presented by financial publishers Financial Times and Nikkei, in association with GIS On an Asia trip In July 2024, Governor Greg Abbott met with South Korea Minister of Foreign Affairs Cho Tae-yul to discuss deepening the economic and trade relationship between Texas and South Korea. Photo courtesy of the Office of the GovernorTEXAS ECONOMIC DEVELOPMENT GUIDE 123 Planning and fDi Intelligence, the ranking of 91 U.S. cities is based on more than four dozen metrics in seven categories — workforce and talent, openness, business environment, foreign business needs, quality of life, investment trends and aftercare. Five Texas metros appear in the top 10, with Houston in first place. Plano, Irving and Dallas rank third, fourth and fifth respectively; Austin places seventh. Fort Worth and Arlington make the top 20. The Greater Houston Partnership helped land 36 new project announcements in 2024, 20 of which were international company deals. Examples include TMEIC Corporation Americas from Japan ($30 million, 300 jobs); IC Star Solar LLC from Cambodia ($30 million, 350 jobs); and czt Energy of Thailand ($25 million, 135 jobs). Gov. Abbott and his economic development team know they cannot take foreign capital investment in Texas for granted, no matter how strong the case may be for it. That’s why the governor in 2024 made several trips abroad to deepen economic partnerships and make the case in person to foreign officials that companies in their markets will be well served having operations in Texas. Road Show “Texas is the eighth-largest economy in the world, a global leader in energy and trade, and the world’s premier economic destination because of our top- tier business climate,” said Gov. Abbott in a December 2024 statement. “That is why this year, I visited with business leaders and government officials in India, Next >