Buda, Texas Emerges as Aerospace and Defense Magnet South of Austin

A new episode of The Building Texas Show reveals that aerospace and defense companies are choosing Buda over Austin for its right-sized spaces, lower rent, and workforce access, challenging the narrative that Central Texas growth is an Austin story.

SD Metrowire Staff
Business
Buda, Texas Emerges as Aerospace and Defense Magnet South of Austin

In the latest episode of The Building Texas Show, host Justin McKenzie interviews Jennifer Storm, CEO of the Buda Economic Development Corporation, and Monica Davidson, CEO of the Greater Buda Chamber of Commerce. The episode, titled The Aerospace & Defense Companies Picking Buda Over Austin, challenges the prevailing narrative that Central Texas' aerospace and defense growth is an Austin story. Instead, the conversation highlights how smaller I-35 corridor cities like Buda are attracting these firms.

According to Storm, aerospace and defense companies are seeking spaces of 10,000 to 20,000 square feet, which are more readily available in Buda than in larger cities. "People are saying aerospace and defense is coming to Austin, but that's not true. It's coming to Buda and Bastrop and Lockhart and Kyle and San Marcos," Storm recounts a recent caller telling her. This trend is supported by Buda's lower rent and access to a workforce that is increasingly looking outside of Austin for opportunities.

The episode details several initiatives driving Buda's growth. The Hive incubator has moved 60 entrepreneurs through four cohorts in its first year, covering industries from salons to AI apps to drones. A new retail incubator is opening in Buda's restored 1884 train depot on Main Street. Additionally, the Hays CISD teacher externship program has placed 17 educators inside local businesses this summer, fostering a pipeline of future talent.

Storm discusses the Buda EDC's use of rebates rather than abatements, paying incentives only after jobs are delivered. She frames this as a low-risk taxpayer investment tied to a single mandate: economic prosperity. Davidson, who has doubled Chamber membership in two years, describes her role bluntly: "I want to be where business begins in Buda." The Greater Buda Chamber rebrand has widened its tent to include businesses from South Austin, Mustang Ridge, Luling, and Lockhart, while partnering with anchors like US Foods, Texas Lehigh, and Jardine's.

The pair also unpack the origin of Buda's trademarked title as the Wiener Dog Capital of Texas, a Lions Club idea from the 1980s that is now the city's largest annual event. The episode is now available on YouTube, Facebook, Instagram, and LinkedIn.

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