With a population of more than 22 million, the state of Texas has continued to attract growth since bygone days when westward-bound hopefuls hung “G.T.T.” (Gone To Texas) signs in their windows.
Today, businesses are still gravitating to Texas, where a sizeable population, supportive state and local governments, and land as far as the eye can see come together in a distinct business climate.
In the big picture, the state is a study in variety. Take, for example, the cosmopolitan flair of the North Texas Metroplex, home to Dallas and Fort Worth, as well as the metro areas of Frisco and Cedar Hill.
Travel south and discover the Gulf Coast settings of Galveston, Corpus Christi and Freeport, or the history-rich South Texas cities of Houston and San Antonio further inland.
If the Hill Country sounds more appealing, there’s always San Marcos and New Braunfels, known for their ambiance and recreational lifestyles.
West Texas provides proximity to lucrative markets south of the border, while East Texas communities, such as Longview, offer pine-covered hills and an absence of gridlock.
With such an environment of geographic, economic and cultural diversity, it’s little surprise that companies of all sizes hang their hats across the Lone Star State.
Companies Navigate Via Port Freeport
Just 60 miles south of downtown Houston, Freeport is home to not only an enviable coastal lifestyle, but also one of the fastest growing ports on the U.S. Gulf Coast.
With 3-mile proximity to deep water, 7,500 acres of available land and an efficient transportation infrastructure, Port Freeport is a popular location for companies driven by a global vision.
“We have everything you can imagine here, from major corporate clients like Dow, BASF, Shintech and ConocoPhillips, to small shippers, importers, manufacturers and trucking companies,” said Phyllis Saathoff, managing director of Port Freeport. “We work directly with corporate relocation firms and the Governor’s Office of Economic Development to find the right fit for all types of prospective clients.”
As the second-largest container port on the Texas Gulf Coast, Port Freeport offers a good fit for companies. Beyond the port’s obvious logistical advantages, it is a focus on client needs that has struck a chord with growing companies.
“We are not your traditional port,” Saathoff said. “We have a team of individuals that understands what it’s like to manage a business in a global environment and we are very attentive to clients’ goals and requirements. Our goal is to always fully understand a client’s business plan, how a port like ours fits into that plan, and then we try to make that plan happen.”
Changes are ongoing at Port Freeport, where businesses continue to expand.
Last year, longtime tenant American Rice Inc. (ARI) said it would embark on a $200 million expansion plan to expand on-port automated warehouse and storage facilities, among other projects.
ARI already employs 350 workers at its Port Freeport rice mill, and 150 new jobs are expected to result from the expansion project.
Construction on the $40 million first phase is slated to begin later this year and will include a fully automated warehouse for storage of finished goods; the relocation of the North American headquarters from Houston and New York for Madrid, Spain-based Grupo SOS Cuetara, which acquired ARI two years ago; a 36,206 square foot instant rice plant; and a 116,736 square foot olive oil bottling plant.
The $70 million second phase will include a cookie-baking facility that will employ 200 or more workers.
With a focus on the future, Port Freeport, ranked 12th among U.S. ports in foreign tonnage, is poised for extensive growth.
“We have a conceptual master plan that takes into account our long-term (15 to 20 years) growth,” Saathoff said. “We are currently building a new container and project cargo facility, deepening and widening our current main channel to 60 feet, and partnering with Freeport LNG/ConocoPhillips on a new liquefied natural gas facility that will offer lower energy costs to our corporate clients.”
Longview Rustles Up “Can-Do” Attitude
Many a Texas fortune has been made on oil discoveries in East Texas, which enjoyed an historic boom in the early 1930s.
While one-time oil town Longview has evolved into a major industrial center focused on agriculture, petroleum products and manufacturing, it has never lost sight of its oil industry roots.
“The oil and gas industry and manufacturing are the key to the success of the Longview region’s economy,” said John Stroud, executive director of the Longview Economic Development Corp. (LEDCO).
In February, major oil industry player LeTourneau Inc. announced a $25 million expansion that will bring 50 new jobs to Longview.
The company produces mining and forestry equipment, and it also designs, manufactures, fabricates and services offshore drilling platforms.
LeTourneau has experienced a significant increase in demand for its proprietary oil rig components, which are manufactured at the company’s Longview site.
Other manufacturing news in Longview includes one of the largest expansion projects announced in the region during the past three years.
Trinity Industries said early last year that it would spend $8 million to expand its Plant #200 in Longview and add 300 employees. Later in the year, the company said it would spend another $7 million to expand its Harrison County Plant #19 and its Longview Plant #110 and add 300 more employees.
“Longview has a good work force, and LEDCO and local governments wanted us to expand [there],” said Steven Randall, vice president of the Tank Car Division for Trinity Industries. “They have been helpful throughout the process. As a result, we will be in production much faster, meeting our customers’ demands more quickly.”
Other companies growing in the region echo similar sentiments about the local government support, as well as the region’s skilled work force.
Bemis Custom Products, a supplier of flexible packaging, cited local support from LEDCO and the city as major advantages of Longview, as well as the company work force.
“The work force in Longview has a ‘can-do’ attitude that you just don’t find very often, along with a genuine willingness to learn new things and to jump in and get the job done,” said Tony Sebia, operations manager for Bemis.
Local officials strive to be one step ahead of business needs when it comes to real estate, as well. Consequently, LEDCO has built a 52,500 square foot shell building in the 487-acre Longview Business Park.
“We wanted to respond to the desire to speed the time frame from the decision to have a new plant to the time it is in production, and this can be done with this shell building,” Stroud said.
Alamo Work Force Fuels Growing Economy
With cultural diversity, a wealth of outdoor recreational activities and a cost of living that is typically 10 percent to 15 percent below the national average, San Antonio is a perennial hot spot for a diverse base of businesses.
San Antonio welcomed 7,000 new jobs and $480 million in investment last year.
Benefiting from a young, productive and bilingual work force, San Antonio continues to catch the attention of industries ranging from manufacturing and information technology to financial services and biotech.
“The city’s bilingual population is attractive to companies already doing business with, or looking into business opportunities in Latin America,” said Mario Hernandez, president of the San Antonio Economic Development Foundation. “Work force training incentives, such as the Skills Development Fund and Customized Workforce Training program, offer opportunities to hire and retain employees prepared to meet the specific needs of a company.”
In one of the largest U.S. job creation announcements in 2005, financial services company Washington Mutual illustrated its confidence in the Alamo City work force saying it would add as many as 4,200 jobs during the next seven years.
The company selected San Antonio for its new regional operations center to serve its future growth. It recently purchased MCI’s campus in San Antonio, which can house 2,250 employees and be expanded to accommodate up to 4,200 employees.
“San Antonio offers a strong work force, great quality of life, affordable housing for our employees and a viable real estate solution to accommodate our growth,” said Benson Porter, chief administrative officer for Washington Mutual.
In the automotive sector, Toyota Motor Manufacturing, Texas is increasing its number of on-site suppliers and together will employ about 4,100 workers when Tundra production begins later this year.
While people are one of San Antonio’s top selling points for growing businesses, a host of other advantages draw businesses, as well.
“The city offers a location midway between the east and west coasts, as well as strategic placement along the Mexico/NAFTA corridor, which provides direct access to international trade and business opportunities,” Hernandez said.
Cedar Hill Offers Room With a View
While it’s true that some things are bigger in Texas, some things are smaller, as well. Cedar Hill is an example of a smaller Texas city that is executing big plans for expansions and relocations.
Located in southwest Dallas County, about 20 minutes from downtown Dallas, Cedar Hill prides itself on its small town charm and friendly character. With a population of nearly 42,000, Cedar Hill has garnered attention during the past several years as an explosion of retail development has unfolded there.
“Because of our retail development (3 million square feet by 2008), our cash reserves are substantial,” said David Miracle, director of economic development for the city of Cedar Hill.
The city is primed for industrial development as well, thanks to alluring incentives, open land and a new business park.
Distribution and manufacturing companies, in particular, can benefit from the coveted Triple Freeport Tax Exemption, which grants exemption from all local taxing authorities, including city, county and school district on inventory that is shipped out of Texas within 175 days.
This incentive provides substantial savings for interstate shippers that turn inventory several times a year.
The city’s incentives have helped win key business projects, including Westar Satellite Services. In mid-2005, Westar was provided $140,000 worth of city incentives to assist in the development of a satellite communications facility in Cedar Hill.
Less than half of Cedar Hill’s 36 square miles are developed, equating into ample opportunity for companies to find a choice piece of land.
And for companies seeking existing real estate, Cedar Hill Business Park, owned and operated by the Cedar Hill Economic Development Corp., offers a variety of sites.
Dualite, Metals USA and Precision Wood currently maintain facilities that total more than 364,000 square feet in the park. JC Penney operates a 420,000 square foot logistics complex adjacent to the park.
Land costs in the 150-acre business park are extremely competitive, and many of the sites have — or are adjacent to — Burlington Northern Santa Fe rail service.