Reshoring | txbiz

Reshoring to
Texas

Data on Texas's Advantages
Ideas for an even stronger Texas

Texas by the Numbers

Companies are reshoring operations to the United States and to Texas at high rates. This web content is built for:

companies considering Texas for location and expansion,
local economic development leaders looking to utilize data and arguments to attract reshoring companies, and
state and local policy leaders looking for ideas to ensure Texas can become more competitive in developing and attracting crucial industry.

#1

State for Exports for 23 Years

#1

State for Solar and Wind

30%

of Semiconductor Market in Texas

10%

of US Manufacturing in Texas

Read the Texas Competitiveness & Resiliency Strategy

Read the Full Report

Introduction

Our Approach

We received a grant from the US Economic Development Administration to assess Texas' economic competitiveness and vulnerability to supply chain disruptions. We collaborated with TIP Strategies, Inc., and a statewide steering committee (LINK) to conduct stakeholder engagement and data analysis. The resulting Texas Competitiveness and Resiliency Strategy offers:

practical data to make the case for your region of Texas,
recommendations to enhance the state's competitiveness and support growth in innovative industries, focusing on Texas’ talent development, infrastructure, toolkit establishment, and sector-specific actions.

Approach

Foundational Strengths

Texas's Strengths

Why relocate operations to Texas? Texas has the 9th largest economy in the world, 30 million Texans, a rapid population growth rate and extensive connectivity with Mexico.

Strengthen the talent pipeline for Texas employers

Fortifying the talent pipeline for Texas employers is the focus of the first goal. Stakeholders emphasized the critical need for finding and retaining skilled workers, which has become an even more pressing concern in recent times. To meet the current and future demand for a skilled workforce, it is imperative to deepen and expand talent development programs through coordinated efforts and additional resources at the state and local levels. The 88th Legislature created the $3 billion Texas University Fund and realigned community college funding around outcomes and workforce alignment. The recommended strategies and actions encompass various areas, such as aligning workforce plans with Texas competitiveness priorities, improving educational outcomes, expanding dual credit and technical education programs, and supporting entrepreneurship education.

Build a world-class infrastructure for today and future generations.

Rapid economic growth and population expansion have strained the state’s transportation networks, airports, seaports, rail systems, water systems, electric grid, and telecommunications infrastructure. Ensuring that Texas has infrastructure capable of meeting the demands of a 21st-century economy by addressing these vulnerabilities and preparing for the future economy is the subject of the second goal. The strategies and actions proposed include advocating for increased capacity at border ports of entry, enhancing transportation infrastructure funding, improving utility and telecommunications infrastructure, and supporting energy resiliency and water infrastructure initiatives. Infrastructure investments appropriated by the 88th Legislature included $1.5 billion for rural broadband, $1 billion for a Texas Water Fund, $5 billion for surface transportation, $400 million for Texas ports, and $5 billion for electric generation funding.

Ensure Texas remains the best location in the world to invest and create jobs.

The significance of Texas' pro-growth, business-friendly regulatory environment and competitive tax incentives in driving economic success is highlighted in the third goal. To maintain and enhance the state's advantages in these areas, it is crucial to revamp tax limitation agreement policies for large capital investments, replenish the Enterprise Fund to attract strategic corporate headquarters, maintain competitive R&D tax credits, and continue tax limitation agreement capabilities at the local level. The 88th Legislature passed important legislation to protect and enhance Texas’ business climate. This includes authorizing a new statewide incentive limiting taxable value of certain property (House Bill 5) and passing the Texas Regulatory Consistency Act.

Support local and regional efforts to make supply chains more resilient.

The fourth goal outlines a set of strategies designed to assist EDOs in supporting businesses to become more resilient in the face of supply chain disruptions. The strategies include the following:

Utilizing business retention and expansion (BRE) efforts to gather information on supply chain issues, suppliers, customers, and potential gaps;
Collaborating with local manufacturers to map the existing supply chain ecosystem;
Engaging in targeted recruitment and retention efforts to fill supply chain gaps and diversify the base of suppliers and customers;
Partnering with industry, government, workforce entities, and education to develop strategies for attracting, retaining, and developing the state's workforce; and
Working with universities, community colleges, manufacturers, and entrepreneurship organizations to promote supply chain innovation and technological advancements for resilience.

Innovative Sectors

Sector-Specific Strategies

Semiconductors/Microelectronics

Semiconductors and microelectronics play a critical role in advanced technologies, and the US currently leads in chip design and patents. The bipartisan passage of the federal Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022 (CHIPS & Science Act) demonstrates the industry's importance. The act directs significant investments toward enhancing US competitiveness, innovation, and national security.

To capitalize on this investment, the 88th Legislature allocated state funding:

$698 million for Texas Semiconductor Innovation Consortium to develop and attract a national semiconductor research consortium and create a state plan for further enhancement of the industry;
$440 million for the Texas Institute for Electronics at the University of Texas; and
$200 million for the Quantum & Artificial Intelligence Chips Fabrication and $25 million for the Center for Microdevices and Systems at the Texas A&M University at College Station

Going forward, Texas should explore the following:

How to ensure Texas wins a significant share of federal research investments in advanced packaging and the National Semiconductor Technology consortium in 2024.
Create technology mapping in semiconductor design and fabrication, in addition to the TSIC state strategy.
Update current analyses of Texas' research excellence across this tech map and how to augment research and development capabilities.
Explore partnerships with Mexico and Central America on less advanced components of workforce development, testing and packaging processes.
Explore how to grow credentialed engineering talent, American master degree and PhD net completion in aligned fields of study to deepen the Texas talent pool.
Form a recruiting effort to promote semiconductor and advanced manufacturing as an industry and a training ladder for semiconductor technician workforce training programs in key areas of the state.

- Implementation

Implementation

The Texas Competitiveness and Resilience Strategy offers an ambitious and comprehensive framework for strengthening Texas’ position as a global economic power and fostering the technologies of the future. Successfully implementing these recommendations will require a broad-based effort involving many stakeholders from the public, private, and nonprofit sectors. Coordination and alignment will be key. The 88th Legislature and the Office of the Texas Governor (Governor’s Office) have already committed significant long term investments in several critical areas. Ensuring these investments are coordinated toward a common vision is imperative.

Therefore, this strategy proposes that a Texas Council on Competitiveness be established to provide recommendations to the Governor’s Office and the Texas Legislature on the strategic alignment of existing and future state economic development investments. The leadership of this new entity should include and be largely comprised of representatives of the private sector and state and local economic development organizations. The TABCCF can play a key role in helping to organize the council and connecting it with the state’s elected leadership.

Texas Industry Data

Industry Data

Reshoring to Texas

Data on Texas's Advantages Ideas for an even stronger Texas

Texas by the Numbers

Companies are reshoring operations to the United States and to Texas at high rates. This web content is built for:

companies considering Texas for location and expansion,

local economic development leaders looking to utilize data and arguments to attract reshoring companies, and

state and local policy leaders looking for ideas to ensure Texas can become more competitive in developing and attracting crucial industry.

#1

State for Exports for 23 Years

#1

State for Solar and Wind

30%

of Semiconductor Market in Texas

10%

of US Manufacturing in Texas

Our Approach

practical data to make the case for your region of Texas,

recommendations to enhance the state's competitiveness and support growth in innovative industries, focusing on Texas’ talent development, infrastructure, toolkit establishment, and sector-specific actions.

Texas's Strengths

Why relocate operations to Texas? Texas has the 9th largest economy in the world, 30 million Texans, a rapid population growth rate and extensive connectivity with Mexico.

Sector-Specific Strategies

Semiconductors/Microelectronics

$698 million for Texas Semiconductor Innovation Consortium to develop and attract a national semiconductor research consortium and create a state plan for further enhancement of the industry;

$440 million for the Texas Institute for Electronics at the University of Texas; and

$200 million for the Quantum & Artificial Intelligence Chips Fabrication and $25 million for the Center for Microdevices and Systems at the Texas A&M University at College Station

Going forward, Texas should explore the following:

How to ensure Texas wins a significant share of federal research investments in advanced packaging and the National Semiconductor Technology consortium in 2024.

Create technology mapping in semiconductor design and fabrication, in addition to the TSIC state strategy.

Update current analyses of Texas' research excellence across this tech map and how to augment research and development capabilities.

Explore partnerships with Mexico and Central America on less advanced components of workforce development, testing and packaging processes.

Explore how to grow credentialed engineering talent, American master degree and PhD net completion in aligned fields of study to deepen the Texas talent pool.

Form a recruiting effort to promote semiconductor and advanced manufacturing as an industry and a training ladder for semiconductor technician workforce training programs in key areas of the state.

Implementation

Texas Industry Data

Reshoring to
Texas

Data on Texas's Advantages
Ideas for an even stronger Texas