Site Selection Magazine recently revealed its list of “America’s Best Counties” for economic development. The publication’s methodology for identifying those counties involves assigning points, which counties earn by attracting projects (tracked between January 2023 and March 2024), capital investment and new jobs. Texas looked like the winner, hosting four of the top 10 counties listed.
This result isn’t surprising to us. We’ve completed many projects in Texas. The state has won Site Selection’s “Governors Award” (given to the best state for economic development) a whopping 11-consecutive times, as of 2023! Texas and site selection seem to be connected at the hip.
It’s natural to wonder how they do it.
One narrative often comes first when discussing Texas: low taxation. There’s no doubt that Texas’s notoriously nonexistent corporate income tax plays a role in attracting projects. As attractive as that may seem, it’s far from the only thing driving development in the Lone Star State. According to a poll carried out by Site Selection, “state and local tax scheme” is only no. 8 on site selectors’ list of priorities.
What else are they looking for?
That poll suggests that selectors are most urgently seeking, respectively, “ease of permitting and regulatory procedures,” “workforce skills” and “land/building prices and supply.”
With regards to permitting and regulatory procedures, Texas gathers the same acclaim as it does for taxation. It (and the rest of the Gulf Coast states) are renowned for trimming wait times.
Texas truly sets itself apart for “workforce skills,” however. For one, its labor supply is growing quickly compared to other states. The state’s 15 million-strong labor force (per 2023 state employment data) marks the highest in its history, which in turn allows Texas to create more jobs. According to the Texas Workforce Commission, Texas increased its labor supply by 3% during 2023 (compared to 1.8% nationally).
And where are these new laborers most likely to be? If we go back to the list of America’s top economic development counties, we get an idea. The four Texas counties that placed in the top 10 were Harris County (Houston), Dallas County, Tarrant County (Fort Worth) and Bexar County (San Antonio). Those four counties essentially contain three of America’s ten largest metro areas.
It's important to note that site selectors are specifically looking for “workforce skills” and not just a “workforce.” It’s here where Texas separates further. The Texas CHIPS Act aims to attract the semiconductor industry, and it allocates $600 million to the University of Texas and Texas A&M to create research and development centers for that industry.
Granted, this is all looking at site selection from a very high level. When it comes to finding a site for your project, you may start at the state level, but things quickly become more granular, both in terms of local government policies and the specific factors important for your needs. The county rankings provided by Site Selection are a great start but, when tackling your project, you’ll want in-depth data and analysis…the kind that Vista Site Selection’s innovative site selection technology team can offer.
Want to learn more about our offerings or our experience working in “America’s Best Counties”? Reach out today.
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