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Investment Profile

Speed Racers

by Ron Starner

In a world where the richest man on earth runs an e-commerce logistics company, it’s not surprising that locations that maximize speed to market tend to grow the fastest.

Exhibit A is Pflugerville, a thriving boomtown just minutes from downtown Austin in the heart of the tech capital known as Central Texas.

If South by Southwest helped put Austin on the map as a hub of music and technology, then it’s safe to say that Pflugerville has become the favorite suburban address in the state capital region for rapidly growing firms that want to reach global markets.

Move over, Jeff Bezos and Amazon. You’re not the only one with the horsepower to drive in the fast lane.

In 62,000-resident Pflugerville just off I-35 on Austin’s booming northeast side, businesses that want to capitalize on speed are choosing to expand in a city that’s firing on all cylinders.

“With our proximity to major arteries, we can access the city of Austin and surrounding areas very efficiently and effectively from right here in Pflugerville,” says Josh Rosenburg, CEO of Accent Foods, a convenience services company that supplies refreshments to workplaces and recreation sites in 10 states and the District of Columbia. “Being located here also helps our recruitment. A majority of our 104 employees live within five miles of our plant.”

Located in the center of I-35, U.S. 290, and State Highways 130 and 45, Pflugerville maximizes business connectivity in multiple ways. Access to four airports — Austin-Bergstrom International, Austin Executive, Taylor Municipal and Georgetown Municipal — doesn’t hurt either.


“Being located here helps our recruitment. A majority of our 104 employees live within five miles of our plant.”

— Josh Rosenburg, CEO, Accent Foods

“We are an asset to Austin and they are an asset to us,” says Amy Madison, executive director of the Pflugerville Community Development Corp., whose motto is “We’re Not Austin. But We’re Close.”

“As Austin gets more expensive, we become an even more attractive relocation option for businesses and people,” Madison says. “Some 24,000 people leave Pflugerville every day to go to work in either Austin or Round Rock. But that is changing quickly as more employers choose Pflugerville as their permanent business home.”

Mantra: Putting Business Pfirst

The 11th-fastest growing community in America in 2016, Pflugerville offers businesses a host of benefits: Foreign Trade Zone 183; deregulated electric rates; triple freeport tax exemptions; a highly skilled workforce where 67 percent of adults have at least some college education; and large-scale sites that are shovel-ready for development.

Pflugerville

Construction of the 180-acre Lake Pflugerville reservoir began in 2005 and was completed in 2006.

“Business Pfirst is our outreach program for business retention and expansion,” Madison adds. “We visit over 100 local companies a year and ask them what we can do to help them grow. They tell us, and then we get to work doing just that.”

Business Pfirst is not just a play on words. The Pflugerville CDC assists companies with workforce training needs; tax and regulatory issues; facility and operational needs; and transportation and logistical requirements.

“If you have a business in Pflugerville, we want to hear from you,” says Madison.

Rosenburg backs that up. “Local officials have been great supporters of ours,” he notes. “They have helped us with resources for funding and overall outreach. We’re in the process of building a new headquarters and regional distribution office that will take us from 27,000 sq. ft. to 65,000 sq. ft. by mid-year 2018. We continue to grow in Pflugerville; we want to be a strong citizen in the community.”


“This seems to be the place that everyone wants to come to. It is getting a lot of looks from people all over the country.”

— Jason Oldham, Vice President of Operations, MW Builders

Loyalty like that is hard to measure, but it’s not uncommon in Pflugerville. At Medway Plastics, Vice President Gerald Hutchinson says the support he received from the PCDC is a big reason why he and his firm are so committed to the city.

“Our company is based in Long Beach, California. We had an opportunity to expand in Texas and I chose Austin for a number of reasons,” Hutchinson says. “We were introduced to the city and the Pflugerville CDC. They helped us find our current 50,000-sq.-ft. facility on 12 acres, and we’ve been very happy with our move. We employ 25 people now, and we plan to grow our business here. We got the facility in September 2015 and we were operational by April 2016. Their speed in helping us become operational so quickly was exceptional.”

German Firm Says ‘Ja’ to Pflugerville

Matt Conner, vice president of service for EOS North America, a German-based company that sells and supports industrial 3D printers, concurs.

“We reached out to the PCDC and worked with them for about a year to find a location in Pflugerville,” says Conner. “We searched from Round Rock to Georgetown and Austin. By finding this site in Pflugerville just 45 minutes from our Temple office, we landed in the perfect spot. We now occupy about 54,000 sq. ft. and we’ll celebrate our first two years here in March. We employ 55 people in Pflugerville and plan to keep growing right here.”

Plugerville

The local business environment was very welcoming of a German company, notes Conner. “We have people all over the U.S. and Canada, but we love it here,” he says. “If you hire people from outside the state, the Austin area is a great selling point for relocation. Everyone likes the vibe here. You can get to downtown or Georgetown in 20 minutes. This is a central location.”

Jason Oldham, vice president of operations for MW Builders, says, “We are a nationwide contractor that does business all over the country and we are moving to Pflugerville. We selected Pflugerville because we wanted to recruit and retain talent, and this location provided proximity to Austin where we believe we can attract and retain the talent we need. That will help our company substantially down the road.”

The new 20,000-sq.-ft. facility in Pflugerville will house “all of our operations and estimating for the work we do in Texas,” says Oldham. “Thirty employees will be based in Pflugerville and we expect that number to grow.”

Besides proximity to Austin, Oldham says MW Builders chose Pflugerville because of its location on the 130 Tollway and quick access to the Austin Airport. “We see Pflugerville as an expanding community. We did a couple of projects here and we really enjoyed working with the people in this community,” he adds. “The city officials and the economic development people here are great to work with.”

Pflugerville is the

12th-best

place to live.

MONEY 2016

When asked what advice he would offer to business executives in other parts of the country, Oldham said: “This seems to be the place that everyone wants to come to. It is getting a lot of looks from people all over the country. For us, it was a strategic decision. Our people are our biggest strength. Pflugerville is very attractive to our current employees and our future talent.”


This Investment Profile was prepared under the auspices of the Pflugerville Community Development Corp. For more information, contact Amy Madison at 512-990-3725 or amym@pfdevelopment.com. On the web, go to www.pfdevelopment.com.

Speed Racers

Entrepreneur Jay Rogers may have selected Knoxville as the home of his innovative automotive company, but he has visions of global domination.

The maker of the world’s first 3D-printed car, Local Motors is much more than an additive manufacturing operation. It is a cutting-edge designer that seeks to transform the way people view transportation and everyday living.

In an interview, company founder and CEO Rogers expounded on his vision for Local Motors and the importance that a Knoxville location plays in his firm’s growth.

Why did you select Knoxville as the location for Local Motors?

ROGERS: We selected Knoxville to be the home of our next micro-factory because this community offers three main ingredients. The first is a great population that can support both sides of what we do — our customers and our co-creators — people who have a great interest in what we do. It is a willing population, with the University of Tennessee and other schools, and that creates a very robust ecosystem for supporting a Local Motors micro-factory.

Secondly, we look for a willing technology relationship that can be helpful for us in these early locations. We have that with the Oak Ridge National Laboratory, the University of Tennessee and others. And we will announce another partner soon.

Thirdly, we found willing investment partners who can help us do the heavy lifting to get going. They wanted to support us. We found a willing nexus of stakeholders, including the chamber, here in Knoxville. A great support infrastructure is here.

How would you describe the business climate in East Tennessee?

ROGERS: East Tennessee has a history, a now and a future. It was traditionally poor. It had a real surge in identity around the creation of the national lab. It has attracted Regal Cinemas, Clayton Homes, TVA, Alcoa and Pilot Flying J. There is also a good ecosystem of small businesses. There is a strong culture of tourism, and Market Square is good. There is a can-do attitude. Plus, East Tennessee is a logistics hub.

“You can find great depth here. Material scientists, machinists and good mechanical engineers are all here. For hardware companies, there is a very strong legacy here. That is one of East Tennessee’s best assets.”

— Jay Rogers, founder and CEO, Local Motors

It has some natural boundaries in terms of geography. There is an ever-growing network of can-do people. We are pursuing a lot more materials companies to come in and join us. Entrepreneurship is big in East Tennessee. Knoxville is located in the middle of Atlanta, Charlotte and Nashville. There is a pull to want to come to Knoxville.

Work on autonomous vehicles is being done here as well. Necessity is the mother of invention, and the can-do spirit here can make that stuff real. They are focused on what they can be. I felt that from the mayors of Knoxville and Oak Ridge and the governor.

What do you like best about the Knoxville-Oak Ridge Innovation Valley workforce?

ROGERS: You can find great depth here. Material scientists, machinists and good mechanical engineers are all here. For hardware companies, there is a very strong legacy here. That is one of East Tennessee’s best assets.

What are your expansion plans for your business?

ROGERS: Our expansion plan is clear: 200 factory jobs will be added. We will tie in tightly with the lab at ORNL. We will open this year and be a very strong community actor. Knoxville will be known as the place that makes its own locally relevant vehicles with the highest technology.

What are the factors driving the growth of your company right now?

ROGERS: It is really driven by demand. We make what we can sell, as opposed to selling what we can make. Vehicle innovations for us will grow.

I look at incorporating people who currently don’t own a car. We look at technology development. The question is — how do we finance hardware innovation? We know how we finance software innovation. What we don’t know as a country is how do we finance hardware innovation. Vendors, demand and access to capital are our three biggest factors.

Our global community is the heart and soul of what we do.

What would you like business leaders from other states to know about the Knoxville area?

ROGERS: I want people to know that in all of the cities and countries I have lived, Knoxville is a place that is ready to do amazing things in hardware. All of this is happening in Knoxville right now. It may soon become America’s leading producer of carbon fiber. The future is pointing to Knoxville in hardware innovation.