Texas’ Economic Policies Make Good Business Sense for Food Processors

August 23, 2018 by Midlothian Economic Development


When it comes to states that can help position manufacturing companies for the best chance of growth and success, Texas is a pack leader.

As the country’s No. 1 exporter, Texas was ranked No. 1 on Chief Executive magazine’s 2017 and 2018 lists of “Best and Worst States for Business.”

The rankings cited Texas’ second-largest state airport system, including the world’s first purely industrial airport at the Fort Worth Alliance Global Logistics Hub; 11 deep-water ports, including the Port of Houston; and 10,425 miles of freight rail – more than any other state.

Texas’ sizable workforce is also touted as a major asset for growing businesses.

With the second-largest civilian workforce in America, the Lone Star State boasts 13+ million industrious, diverse Texans – and that number just keeps growing thanks to the state’s high rate of in-migration.

“Texas is a pro-business state that has benefitted from sensible regulations, funding available for workforce training, and two decades of lawsuit reform that have allowed manufacturers and businesses generally to expand and grow jobs,” said Tony Bennett, president of the Texas Association of Manufacturers. “As a result, Texas is the USA’s top exporting state for manufactured goods.”

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With comprehensive educational infrastructure that includes 37 public universities and upper-division centers, 50 community college districts, and customized workforce training assistance through the state’s Skills Development Fund, Texas is well equipped to help businesses with hiring and training needs.

These myriad advantages are just some of the many assets that make Texas such a lucrative place for manufacturers, including those in the state’s growing sector of food and beverage processors.

These companies are drawn to Texas’ economic policies that promise less government, lower taxes, less burdensome regulations, and competitive incentives.

“Texas has sensible regulations and, for decades, has attracted numerous food and beverage manufacturers, including major multinational corporations,” said TAM’s Bennett. “Our state agencies work with an attitude of wanting businesses to succeed and create more jobs, so long as management follows state and local laws, rules and guidance for health and safety, and operates a safe working environment for their employees.”

Additionally, with no corporate nor personal state tax, and advantages such as state sales and use tax exemptions for manufactures, Texas is a favored destination for businesses across a diverse array of manufacturing industries – and more.

These factors comprise just some of the many reasons Texas recently claimed the top spot in CNBC’s “America’s Top States for Business 2018” ranking.

The ranking noted that Texas added 350,000 jobs in the past year which means that one in seven jobs created in the United States in the past year was created in Texas.

The state’s robust economy, booming energy sector, and pro-business environment helped it snag high-level finishes – No. 7 for workforce, No. 1 for infrastructure, and No. 3 for access to capital, to highlight a few – in CNBC’s categories of competitiveness.

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When it comes to the food industry, Texas blends a supportive environment with location assets key to long-term success – a highly skilled workforce, extensive land and property options, abundant energy and water resources, proximity to raw ingredients, and a dynamic road and rail transportation network.

Additionally, state and local entities strive to eliminate unnecessary bureaucratic obstacles.

“Food safety regulations in Texas are sensible and in line with other states where it is favorable to establish food manufacturing operations,” said Bennett.

Framed by a state philosophy and progressive policies that incorporate customized training programs, fast-track permitting, streamlined incentive programs, and flexible regulations, it’s easy to see why Texas shines as such a compelling destination.

It seems that G.T.T. – Gone to Texas – rings as true for residents and businesses today as it did for westward-bound settlers in the 1800s.

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