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About 500 companies employ more than 40,000 workers

in the auto sector in Texas and pay an average annual wage of more than $62,000.

Source: Texas Governor’s Office of Economic Development & Tourism

in Texas? Site Selection Managing Editor Adam Bruns interviewed dozens of people last year and chronicled Musk’s journey from California to the Lone Star State. In the end, the usual suspects prevailed: presence of a skilled workforce, particularly in electronics; availability of a large real estate tract that enabled a desirable rate of return on investment; generous state and local incentives package; a largely positive and forward-looking business climate; willingness by state and local leaders to get aggressive in the deal-making process; central location in North America; superior transportation and logistics networks; and direct access to the political powers-that-be in the state capital.

“While automotive seems like a very distinct difference, the truth is Austin is home to some of the most advanced electronics manufacturers in the world,” said Ed Latson, Executive Director of the Austin Regional Manufacturers Association. “The skills needed to build their products are not that different than what it will take to put together an electric vehicle.”

Latson added that “Tesla should be a magnet for an entire ecosystem of business and suppliers that support automotive plants and their employees.”

Tesla is far from alone. In recent years, Texas has hauled in major investments from General Motors, Toyota, Peterbilt, Toshiba, Caterpillar and other vehicle producers. Since 2017, more than $2.5 billion in automotive plant investments have landed in the Lone Star State. These include two major expansion projects by Toyota at its truck plant in San Antonio, and a $106 million investment by East Penn Manufacturing Co. in Tempe.

Other large deals have come from AW Texas/Aisin, Texas Speed & Performance, Cardone Industries, Inc., and scores of suppliers.

Altogether, more than 1,750 automotive manufacturing plants call Texas home, and Texas ranks No. 7 in the U.S. in total automotive manufacturing employment. From 2009 to 2016, total exports of cars and trucks from Texas more than doubled, from $9.2 billion to more than $18.5 billion.

Texas has also experienced a 17% increase in automotive manufacturing output since 2014, according to the Governor’s Office of Economic Development & Tourism.

Approximately 500 companies employ more than 40,000 workers in this sector throughout Texas, paying average annual wages of more than $62,000.

Texas also serves as the primary link between Mexico’s automotive plants and the rest of the automotive manufacturing base in North America.

Add it all up and it is no wonder Musk chose Texas. The only question is, who is next?

SurgesAmazon in Texas

by ADAM BRUNS

There’s a lot more to Texas goods movement than one e-commerce giant. But Amazon’s very large footprint makes a deep impression.

In March 2021, Amazon announced plans to open a new 1-million-sq.-ft. fulfillment center in Amarillo that will create more than 500 new full-time jobs.

“We look forward to becoming part of the fabric of the Amarillo community and are thrilled to be able to expand our operations in the Texas panhandle,” said Mark Marzano, director of operations at Amazon. “We’re grateful for the support we’ve received from local and state leaders and look forward to creating over 500 new, full-time jobs for the local community,” he said, as Mayor Ginger Nelson gave credit to the Amarillo Economic Development Corporation “for the hard work in helping make this fantastic partnership with Amazon a reality.”

Indeed, in a conversation I had later that month with Amazon Head of Worldwide Economic Development Holly Sullivan, she emphasized the importance of fabric over prefabricated plans.

“Across the board, there are two things that will drive most of our business decisions,” she told me. “One is available talent — ensuring we can have that initial day one talent, and also where we can invest in the long-term talent pipeline. Number two would be business friendliness. We want to locate and invest in communities that want us and can support us in the long term, and where we can build a long-term community partnership.”

Whether it’s a fulfillment center or a corporate office in location such as Austin, she said, “I can’t emphasize enough the importance

Since its inception in 1989, more than 53 million square feet have been developed at AllianceTexas.