< Previous16 TEXAS ECONOMIC DEVELOPMENT GUIDE in the state, further develop the expertise and capacity at Texas higher education institutions, and maintain our position as the nation’s leader in semiconductor manufacturing. Texas is already home to one of the world’s largest data center markets, and continuing demand for AI solutions is driving significant investments in data center growth across the state. Coupled with the state’s leadership in cybersecurity, Texas is the new frontier in technological advancements. Bottom line: Texas has the innovation, the infrastructure and the talent to continue to lead the American resurgence in critical semiconductor manufacturing and the technologies of tomorrow. “ To ensure Texas continues to move at the speed of business, the state has launched the Texas Business Courts, a statewide, specialized trial court system created to resolve complex business disputes. ” — Greg Abbott, Governor of TexasTEXAS ECONOMIC DEVELOPMENT GUIDE 17 How will the Statewide Strategic Economic Development Plan help move the Texas economy forward over the remainder of this decade? GOV. ABBOTT: As the eighth-largest economy compared to the nations of the world, we compete on the international stage with a clear message: Texas is and will remain a global economic powerhouse. My five- year economic development strategic plan creates a blueprint to continue economic expansion and job creation in Texas. “Bigger. Better. Texas.” results from a year- long collaboration with local, regional, and statewide organizations, business and industry leaders, and partnering state agencies led by my Texas Economic Development & Tourism Office. The detailed plan identifies target industry sectors expected to drive strategic economic growth, outlines initiatives to advance the state’s global competitiveness, and provides data and recommendations to inform economic development decisions for a stronger, more prosperous Texas for years to come. (https://gov.texas.gov/ BiggerBetterTEXAS) We’ve seen a lot of California companies elect to move their headquarters to Texas. Why do you think this is happening, and will we see more of that movement in the rest of 2025 and on into 2026? GOV. ABBOTT: More than 300 businesses and major global brands have relocated their headquarters to Texas since I’ve been governor. They fled the stranglehold of over-regulation and high taxes in other states for the freedoms found in Texas. They are in good company. They join 52 Fortune 500 headquarters and one in 10 of all publicly traded companies in the U.S. Other industry leaders are also choosing to incorporate their businesses in Texas, particularly those in tech and innovation. To ensure Texas continues to move at the speed of business, the state has launched the Texas Business Courts, a statewide, specialized trial court system created to resolve complex business disputes. And we continue to make strategic investments in infrastructure, workforce development and the domestic supply chains critical to tech innovation as we welcome new business investments each day. 18 TEXAS ECONOMIC DEVELOPMENT GUIDE A s executive director of the Texas Economic Development & Tourism Office, Adriana Cruz leads a team of economic developers who work every day to make Texas the best place in America for corporate investment. Judging by the results, which include winning the highly coveted Site Selection Governor’s Cup trophy for a record 13 consecutive years, Cruz and her team are excelling at their jobs. In the following interview, Cruz discusses the state’s new Economic Development Strategic Plan and how it will be implemented. The state’s new five-year Economic Development Strategic Plan is titled “Bigger. Better. Texas.” What does that mean to you? CRUZ: The new “Bigger. Better. Texas.” Economic Development Strategic Plan is our blueprint to build a stronger Texas of tomorrow. It means that here in Texas, our future is brimming with promise. And although we have experienced Texas’ chief executive for business growth says the state is firing on all cylinders. by RON STARNER ‘Economic Development Is A In Texas’ LEADERSHIP INTERVIEW: ADRIANA CRUZ Team Sport Team Sport Adriana Cruz (third from left) serves as Gov. Abbott’s top economic developer. Photo courtesy of the Office of the Governor20 TEXAS ECONOMIC DEVELOPMENT GUIDE extraordinary economic success in the past decade, we are not becoming complacent. We must capitalize on our success and capture the promise of our future economy to maintain our competitive edge in the years ahead. This strategic plan is something that all our economic development partners across the state can rally around. Economic development is a team sport in Texas, and everyone has a role to play in building our future economy. It will take all of us working together to continue to keep Texas the premier place to visit, live, work and grow a business. What are the main pillars of the plan? CRUZ: The economic development strategic plan accomplishes a number of objectives, all developed with the broader economic development ecosystem in mind. The plan establishes a unifying vision for the future; identifies new target industry sectors that are expected to drive economic growth and job creation; outlines objectives to advance our state’s global competitiveness; and provides data and recommendations to inform economic development decisions across the state. We are going to continue to build the strongest “ Texas is where today’s products are made and where tomorrow’s technologies are brought to life. ” — Adriana Cruz, Executive Director, Texas Economic Development & Tourism Office Photo courtesy of the Office of the GovernorTEXAS ECONOMIC DEVELOPMENT GUIDE 21 economy in the nation around four pillars: Business and Industry; Entrepreneurship and Innovation; Workforce; and Infrastructure. One of the target industry sectors in the plan is called Energy Evolution. What does that mean, and what are the main goals of this initiative? CRUZ: Texas is the energy capital of the world. We are already leading the nation in energy production; Texas provides nearly one-fourth of all domestically produced energy in the U.S. The Energy Evolution sector is one of the 10 target industry sectors identified in the new economic development strategic plan. We believe that Texas is best positioned to lead in the innovation and evolution of this industry. This plan builds on our all-of-the-above (and all-of-the-below) energy strategy and positions Texas to maintain our role as a global leader in oil and gas, solar, wind and new energy innovations such as hydrogen, carbon capture and small modular nuclear. Texas is the birthplace of the integrated circuit and semiconductor technology. How will Texas ensure that it continues to lead America and the world in all aspects of the supply chain for this vitally important industry? CRUZ: Texas is proud to be the birthplace of the integrated circuit — first invented at Dallas- based Texas Instruments — and the home of the semiconductor industry of the future. Texas is where today’s products are made and where tomorrow’s technologies are brought to life. We are the top state for semiconductor manufacturing, having led the nation for 14 years in the export of semiconductors and other electronic components. Today, more than 47,000 Texans work in the semiconductor industry, and we are prepared to meet the industry’s needs for tomorrow. In order to continue our leadership, we have identified Semiconductor Manufacturing as a key subsector within the new economic development strategic plan, and we are focused on continuing to promote growth of the semiconductor supply chain here in Texas. Thanks to the passage of the Texas CHIPS Act, we have a new Texas CHIPS Office in our office that oversees the Texas Semiconductor Innovation Consortium (TSIC) and the nearly $700 million Texas Semiconductor Innovation Fund (TSIF). Texas is where America’s chip industry is building for tomorrow.22 TEXAS ECONOMIC DEVELOPMENT GUIDE Mexico is an important trade partner with Texas. Given the new tariffs that have been put in place, how will Texas continue to work with Mexico on trade policy and cross-border FDI? CRUZ: Mexico and Texas have a strong and long-standing economic and cultural partnership. We plan to continue to work with businesses and trade partners in Mexico to uphold our strong trade and investment relationship. The State of Texas Mexico Office, which operates under the Texas Economic Development & Tourism Office, is poised to continue its mission to promote Texas business into Mexico and attract foreign direct investment (FDI) into Texas. As the No. 1 exporter in the country for the past 23 years in a row and the top U.S. destination for foreign direct investment over the last two decades, Texas will continue to leverage relationships with our top trade and FDI partners to grow our economy. SpaceX announced recently that it plans to invest $1.8 billion to build out the infrastructure of Starbase, Texas. What will this mean for the Texas economy and the state’s workforce? CRUZ: Texas’ aerospace, aviation and defense industry not only fuels innovation, but it is a major driver of our economy, supporting local communities and creating new jobs for hardworking Texans. Across the state, we are home to state-of-the-art development and test sites for multiple commercial space firms, all leading the way in cargo, satellite and space tourism transport. It’s thanks to industry innovators like SpaceX and their infrastructure investments in South Texas, as well as other investments in regions across the state, that we remain a global force in innovation and a beacon of economic optimism for the entire world. With continued investments in aerospace, aviation and defense, supported by the newly formed Texas Space Commission, Texas will continue to see even more groundbreaking industry developments. Texas keeps growing at a substantial pace each year. What will Texas look like 10 years from now? Do you have any specific growth projections you can share for the population, economy and jobs? CRUZ: Our state’s visionary leadership has provided an environment where business and individuals can succeed, which has led to significant economic growth and success across our great state. Looking back at the past two decades, Texas dominated the nation in population growth. In 10 years, we can expect to continue this population growth and will likely reach 40 million in population by 2035. In addition, Texas has had an impressive 10- year GDP growth rate of 38.7%, growing faster than the nation as a whole. I think we can expect to see more record-breaking economic expansion in the years ahead, especially given the diversity of our economy and the strong population trends providing a skilled, diverse and growing talent pool. I think it’s safe to say that the Future is Texas! And working with all of our economic development partners across the state, we’ll continue to build a bigger, better and stronger Texas for generations to come. Adriana Cruz at the signing of a Statement of Mutual Cooperation with KOTRA, the Korea Trade-Investment Promotion Agency, to strengthen the economic relationship between South Korea and Texas. Photo courtesy of the Office of the GovernorTEXAS ECONOMIC DEVELOPMENT GUIDE 23 A s President and CEO of the Texas Economic Development Corporation (TxEDC), Aaron Demerson leads an organization that has spent over a decade helping to position Texas as the No. 1 state for business. TxEDC is an independently funded and operated 501(c)(3) nonprofit organization responsible for marketing and promoting Texas as the premier business location. Along with the Governor’s Texas Economic Development & Tourism Office, and the TxEDC board — chaired by Arun Agarwal, CEO of Nextt — these partnerships help make up the cornerstone of Governor Greg Abbott’s economic development agenda to build a bigger, better and stronger Texas. This strategic alignment has delivered measurable success — most notably, Texas has earned LEADERSHIP INTERVIEW: AARON DEMERSON Together with the Governor’s Texas Economic Development & Tourism Office, TxEDC and the TxEDC board, chaired by Arun Agarwal, these partnerships form the foundation of Governor Abbott’s agenda to build a stronger Texas. Photo courtesy of Office of the Governor TxEDC chief outlines the approach that delivers a winning strategy. by RON STARNER Leading Leading The Way to Top Performing State24 TEXAS ECONOMIC DEVELOPMENT GUIDE the Governor’s Cup for a record- breaking 13 consecutive years, which is awarded based on the number of qualifying capital investment projects per state. In the following interview, we asked him how Texas achieved this lofty ranking and how it plans to stay No. 1 in the years to come. What are the factors that you think are most responsible for Texas winning the Site Selection Governor’s Cup award for a record- setting 13 years in a row? DEMERSON: Texas consistently wins the Site Selection Governor’s Cup due to its pro-business environment, low taxes, skilled workforce, strategic location and strong infrastructure. The state offers a predictable regulatory climate, economic incentives and a high quality of life, making it attractive for business expansion and relocation. As a leading economy in the nation and around the world, Texas can provide economic incentive tools that promote job creation, energy innovation, and technological advancement — helping to attract large, capital-intensive projects that are vital for continued growth. In addition, Texas has a can-do attitude and doesn’t rest on its laurels. Even as the No. 1 state, we remain focused and driven and never take that position for granted. In addition to having the top economic development team in the nation at the state level, we have the best of the best at the local level. This is where the rubber meets the road and our community partners are on the front lines — where deals are closed, projects take shape and the foundation for our Governor’s Cup wins is truly built. They deserve the credit for turning strategy into success. What is your primary message when meeting with CEOs and site selectors considering a Texas business expansion opportunity? DEMERSON: Our key message is that Texas takes a common-sense approach toward doing business. We have a business-friendly climate with no corporate income tax, a large, skilled and world- class workforce, robust infrastructure and access to global markets. The state’s economic stability and commitment to innovation make it an ideal place for business growth. Governor Greg Abbott often shares that CEOs tell him Texas provides the freedom and environment they need to succeed. When CEOs are asked why they chose Texas over other states, they often point to our business-friendly climate and the strong relationships that make them feel like friends and family. Texas is home to some of the world’s biggest and most influential brands, including impressive figures like 52 Fortune 500 corporate headquarters and over 3 million small businesses that employ the state’s world-class workforce. Which industry sectors are growing at the fastest rate in Texas right now and why? DEMERSON: The technology, biotech, life sciences, engineering and aerospace industries are experiencing rapid growth. Factors such as strong university partnerships, venture capital investment and a focus on innovation hubs drive this expansion. The energy transition and semiconductor manufacturing boom, fueled by state and potential federal incentives, also contribute to sector growth. To promote these sectors, we recently hosted the Powering the Future: Texas Energy Summit in Austin, sponsored by TxEDC investor CenterPoint Energy. Panel discussions explored how Texas is managing its energy resources and implementing “ Texas consistently wins the Site Selection Governor’s Cup due to its pro-business environment, low taxes, skilled workforce, strategic location and strong infrastructure. The state offers a predictable regulatory climate, economic incentives and a high quality of life, making it attractive for business expansion and relocation. ” — Aaron Demerson, President & CEO, Texas Economic Development Corp.Next >