Why do Manufacturing Companies Choose to Start their Companies in Texas?

Why do Manufacturing Companies Choose to Start their Companies in Texas?

Written by Alison Lurie, In Business, Published On
March 3, 2023

Many entrepreneurs prefer to start their manufacturing companies in Texas because it has a very vibrant and positive business climate. In addition, the state has the second-biggest workforce in the US, which is made up of highly educated and high-performing workers. This is why entrepreneurs are starting advanced manufacturing companies in Texas because they will have access to the diverse and extensive workforce which is made up of over 14 million workers. In addition, the state has a lot of educational institutions which play a big role in increasing the workforce supply and innovation in the state.

Why do Manufacturing Hubs Start their Companies in Texas?

Why do Manufacturing Companies Choose to Start their Companies in Texas?

Other reasons why entrepreneurs are starting their businesses in the state include:

The state has incentives and a competitive tax climate

Businesses in the state enjoy different types of tax benefits which are available at the local and state level. For starters, the state does not have any personal income or corporate tax. In addition, there is no Estate/Gift tax. This means businesses can save millions of dollars in taxes only from relocating to the state. In addition, the state has very reasonable sales tax regulations. When businesses and consumers pay less money to taxes, they will have extra cash to spend.

Moreover, the state also provides different tax exemption programs for manufacturing businesses. For example, businesses can enjoy the sales tax exemption, which is available on manufacturing equipment and machinery. Moreover, businesses can enjoy the franchise tax exemption which is available to installers and sellers of solar energy equipment.

There is advanced infrastructure

The lone star state is not only big but is also centrally located. This makes it a major hub for both local and international ground, ocean, and air shipping. Texas is the leading exporting state in the US because of its infrastructure and location. So, location helps to insinuate people to move their businesses toward Texas. They will have better luck moving their products around on time.

There is a diverse economy

The state has many strong sectors in the manufacturing world. Those sectors include the oil and gas sector, automotive and IT technology, aerospace, and life sciences sectors. Therefore, businesses can benefit from each other by building on the success of others. In addition, the business community’s diversity and support can help you to grow in your field. It also gives you opportunities to branch out into existing businesses and get new clients. It’s beneficial to move your company where there are a good amount of options.

It has a business-friendly climate

The state has an environment that promotes the growth of businesses. For instance, the government, local agencies, and private organizations provide financial assistance to start-ups. Which promotes the development of these businesses. In addition, the state has advanced infrastructure, a low cost of living, a transparent regulatory structure, and a highly skilled workforce. In addition, it is centrally located and has an extensive transportation network, making it a great place to start a business. These are great incentives to start companies in the lone star state.

There are simple state regulations

Business owners can follow simple business laws and comply with the state without needing assistance from third parties. Businesses enjoy a greater amount of freedom and simplified guidelines, which allow them to grow easily and gradually. They don’t have to worry too much as most of their worries are taken care of. Business owners can have the freedom to start their businesses with ease.


Manufacturing companies choose to start their businesses in Texas because the state has a wide pool of available labor. They also have advanced infrastructure and simple state regulations. Moreover, start-ups can enjoy tax benefits, incentives, and support from existing businesses. Starting their businesses in Texas will benefit them in the long run. Not having to stress about your company can make all the difference.

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