Published Mar 22, 2023 by Taylor Tatum
The Houston region continues to attract new companies, proving it remains a top destination for companies looking to relocate, expand or establish new operations. According to a Partnership analysis, the new business category accounted for more than 50% of new business announcements in 2022.
Site Selection Magazine reported the Houston-The Woodlands-Sugar Land MSA won 255 projects in 2022, ranking third among large U.S. metros. The Chicago metro ranked first with 448 projects, while Dallas-Fort Worth-Arlington ranked second with 426 projects.
The Partnership reported 199 new business announcements in the Houston area in 2022, a lower number than Site Selection Magazine due to differences in reporting structure and data retrieval methods. Manufacturing was the most common sector, representing 29% of all announcements, according to the Partnership analysis.
A few noteworthy Partnership-supported projects include:
Texas as a whole remains the top destination in the nation for new companies. Site Selection Magazine awarded Texas its 11th consecutive, and 19th total, Governor's Cup for the most total capital investment projects in the nation for 2022 with 1,028 projects. This was more than twice the number of projects that second-place Illinois attracted.
In order for a project to be counted toward the Governor’s Cup race, projects must meet one or more of these criteria: a minimum investment of $1 million, the creation of 20 or more new jobs, or 20,000 square feet or more of new construction.
Despite a slight dip from the 2021 project count of 1,123, Governor Greg Abbott told Site Selection Magazine he remains optimistic about Texas’ future, congratulating the “exceptional economic development teams at the local, regional, and state level who work so diligently to attract and retain these growing businesses and the jobs they create in communities across Texas.”
Texas remains number one in the United States for the most Fortune 500 headquarters, with Houston being number one in Texas. Twenty-four of Texas’ 53 Fortune 500 headquarters are located in Houston.
Governor Abbott also touted the state’s lack of an individual income tax, its business-friendly regulatory environment, workforce, and recent investments in infrastructure as reasons why more and more businesses are choosing to relocate or expand in Texas.
Referring to Texas as the “economic engine of the nation,” Governor Abbott stressed that in order for the state to remain a leader on the national and global levels, it would need to continue to “lead with major capital investments in critical industries such as advanced manufacturing and energy production” and to “work collaboratively with local economic development organizations and business communities and maintain strategic economic development tools.”
Maintaining these competitive advantages is a key issue state legislators are addressing during the current legislative session. House Bill 5, which the Partnership supports, aims to establish a new economic development incentive program to attract new businesses.
Learn more about why companies choose Houston.