Texas won the Governor’s Cup for the 10th consecutive time. Site Selection The magazine awards the cup each year to the state with the most business locations and expansions. To be considered, projects must involve a capital investment of at least $1 million, 20 new jobs, or 20,000 square feet of construction.
For 2021, Texas had an impressive 1,123 qualified projects, more than three per day, 342 more than in 2020, and the most on record. That total more than doubled second-place Ohio (507) and significantly outpaced the rest of the top five from Illinois (480), California (301) and North Carolina (282).
Some of Texas’ triumphs are truly enormous. The state is the site of four of the top 10 projects by capital investment, including the largest (the $30 million Texas Instruments semiconductor plant in Sherman) and the third (the $17 million Samsung semiconductors to Taylor). Others include Nacero (industrial gas) and Covestro (chemicals). Switch (data processing) is among the largest in terms of square footage. The Texas Instruments Project, Amazon.com, and Maxter Healthcare are some of the best for the job. This is a fairly diverse group, illustrating the state’s competitiveness across a broad spectrum.
There are multiple factors that drive achievement of this magnitude, reflecting both natural endowments and informed decisions spanning generations. Texas has a young population, favorable location and climate, infrastructure to support global commerce, competitive costs, attractive incentive programs, regulatory efficiency, and the sheer inertia of continued success and the clusters of business that result from it. result.
Several new initiatives further support the expansion, one being the greater investment in basic and applied research at Texas universities. Economists have repeatedly analyzed the potential benefits of research universities. These studies have revealed that the impact of research universities on the most innovative aspects of our economy is profound, from fostering discoveries and their commercialization to providing a flow of highly qualified graduates. Deployment and support of broadband is also critical to continued economic growth, especially post-pandemic, and recent efforts have been notable.
Texas and its talented team of economic development professionals do a lot of things right, and the proof is in the numbers. There is always a way to improve.
Texas should reinstate Chapter 313 or a similar program that encourages development with limits on property tax. This tool is due to expire at the end of the year.
On the workforce front, our state should also make the necessary investments in world-class public education and job training for a growing and diverse population. Texas must also avoid discriminatory social policies that impede the ability to attract knowledge workers and their employers.
A decade of dominance is laudatory, but economic progress is inevitably forward-looking.
Let’s continue like this!
Mr. Ray Perryman is Chairman and Chief Executive Officer of the Perryman Group. He wrote this column for The Dallas Morning News.