by RICHARD WESTLUND

International access, a

high-touch labor pool and

wide-open spaces are just

a few of the Lone Star

State's advantages for

growing businesses.

Boeing Corp. chose El Paso to build an upgraded guidance system for its Minuteman III missiles. For Ameritrade Holding Corp., Fort Worth offered an ideal location for its online brokerage firm. And Swiss-based Mikron Technology recently selected San Antonio for a new cellular phone production plant.

Long known for its cattle, agriculture, oil and gas production, Texas has become a global powerhouse in dozens of technology industries, ranging from computers and telecommunications to semiconductors, software, aerospace, multimedia and life sciences. The Lone Star State is also known for its "high-touch" employers like financial service firms, customer care centers and lodging establishments.

With its strategic international location, growing work force, and numerous available office, industrial and distribution sites, Texas (population 20 million) is drawing new investment from virtually all industry sectors. At the dawn of the 21st century, Texas is one of the nation's most diversified industrial states with a US$650 billion economy.

Finnish Firm Finds Texas Climate to Its Liking

In 1995, JOT Automation, based in Oulu, Finland, opened its North American headquarters in Irving, a northwest Dallas suburb. "Irving has met all of our expectations," says Mike Kettula, JOT Automation president. "The community supported us so much that we had no reason to look elsewhere when we decided to expand." JOT provides automation solutions for the electronic industry, specifically the printed circuit board (PCB) assembly process. "The presence of 'high tech' in the Metroplex provides a strong 'home market' for local companies as a supplier," says Kettula. "As other technological companies make Irving their home, it also creates new opportunities for companies like us." In its second full year of operations, JOT's Irving facility quadrupled its sales, generating a third of the JOT Automation Group's $34 million in worldwide revenue. Recently, JOT relocated to a nearby 27,000-sq.-ft. (2,508-sq.-m.) manufacturing facility and for the first time began making its equipment in the United States. "JOT has been very well served by providers of various services in Irving," says Kettula. "A prime example of this is that our move to the new production facility proceeded pretty much as planned without any disruptions in our business."

Texas enjoyed strong job growth throughout the 1990s -- about 1.5 million jobs -- with no sign of a letup today. Unlike most states, Texas has seen its manufacturing jobs growing at a rapid clip, especially in the technology sectors.

To take just one example, Atmel, a semiconductor manufacturing firm based in San Jose, Calif., is investing $1 billion in renovating a 650,000-sq.-ft. (60,387-sq.-m.) facility in Irving, in the heart of the Dallas-Fort Worth "Metroplex." Working closely with the Irving-Las Colinas Chamber of Commerce, Atmel acquired the former Hitachi plant in December 1999, and is ramping up to create 1,000 immediate jobs with 2,500 jobs forecast by 2003.

"This transaction will greatly enhance our ability to increase the production of our leading edge semiconductors," says George Perlegos, Atmel's president and chief executive officer. "By acquiring this facility, we will significantly save both the time and the expense associated with building a new fabrication facility. This will also allow us to take full advantage of the partnership opportunities we are currently developing."

Petrochemical-related manufacturing is also on an upswing, especially along the Gulf Coast, although the cyclical nature of the industry has dictated a slower approach to new investment. For example, TurboCare, a turbine machinery re-manufacturing and repair company, recently announced a 175-job expansion of its Houston-area operations. "We are centrally located to serve both our domestic and international customers," says Jim Williams, general manager of Houston Services. "The cost of living, the ability to recruit high-caliber employees and the work force in general is very good here."

The service sector is also growing strongly in Texas. Financial services companies have been drawn by the state's increased prosperity, while numerous call centers and customer care centers take advantage of the state's productive work force -- now approximately 10 million strong. In Amarillo, for instance, Southwestern Bell is steadily expanding its regional call center.

Distribution companies are taking advantage of Texas' multimodal transportation network and central geographic location to serve the United States, Mexico, Canada and other international markets. For instance, Rudolph Miles & Sons opened a 126,000-sq.-ft.(11,706-sq.-m.) distribution facility in February at the Sharyland Business Park in McAllen, near the Mexican border. "The new center was built to help fill the need of one of our existing customers," says John Dillon, real estate manager for the firm. "This is part of our future and will help us capitalize on increased trade with Mexico."