We’ve already discussed the advantages of doing business in the US. Now let’s talk about where in the US. Everything’s bigger in Texas - including the opportunity for emerging tech services companies. Texas has a population of close to 30 million people and a GDP of around USD 2.5 trillion, with the highest growth rate in the US.
What’s even more interesting is how much of that population and wealth is concentrated in the Texas Triangle: the cities of Dallas, Houston, Austin, and San Antonio. The Texas triangle has 2/3rd of the state's population and is responsible for 3/4th of the GDP. It is home to the headquarters of fifty-three Fortune 500 companies. It is teeming with talent from the more than 50,000 students graduating from world-class universities in the heart of the Texas Triangle. A tech services company based anywhere in the Texas triangle has all of these opportunities within a 3-hour drive.
Houston: Energy Hub and Healthcare Center
Known as the energy capital of the world, Houston boasts a robust manufacturing sector, particularly in oil and gas equipment and petrochemicals. The city is home to over 5,000 energy-related establishments, contributing significantly to its economic vitality. With a GDP of over $500 billion, Houston's manufacturing output encompasses a wide range of industries, including aerospace, chemicals, and machinery.
It also stands out as a leading healthcare destination fueled by the presence of the renowned Texas Medical Center. This sprawling complex houses top-tier hospitals, research institutions, and medical facilities, driving innovation and demand for healthcare-related products and services.
If your tech services company is focused on either the energy sector or healthcare, Houston is an obvious destination.
Dallas: Business Hub and Corporate Center
Dallas is a thriving business hub with a diverse economy encompassing finance, technology, healthcare, telecom, and manufacturing. It is home to the headquarters of more than 20 Fortune 500 companies including AT&T, American Airlines, and ExxonMobil, among many others. Many other companies have a significant presence there as can be observed by a simple drive on Legacy Drive and Headquarters Drive. I realized the strength of a large enterprise presence in Dallas when I looked at the Flux7 customer list and realized most were based in Dallas.
The city affords many economic opportunities for tech services companies with its diverse corporate presence. These companies fall into the early-majority and late-majority groups, making them excellent customers who heavily rely on experts to incorporate technological advances.
Austin: Tech Hub and Innovation Center
Austin's reputation as a tech hub and innovation center continues to grow, fueled by its vibrant startup ecosystem, world-class research institutions, and established tech giants. It’s not just all software companies - Austin is home to almost all the semiconductor companies and has multiple fabs, earning it the name Silicon Hills.
The recent establishment of Tesla's Gigafactory, SpaceX's Starlink factory, and Samsung's chip fab have jump-started the manufacturing industry in the Austin area. Each of these manufacturing facilities will need other manufacturers to support them and so a manufacturing boom is expected around Austin. For example, Hanwha Advanced Materials is already opening a 200,000 sq ft facility north of Austin.
The rich startup ecosystem provides tremendous opportunities for Austin-based tech services companies to innovate and find their niche before upgrading to bigger clients. Early-adopter tech companies are not as lucrative as early-majority customers, but they allow tech services companies to get ahead of upcoming trends - positioning them to capitalize on the opportunity when that technology reaches the early-majority stage.
In addition, Austin is one of the few places in the world with a demand for silicon manufacturers. Finally, Austin is the Capital of Texas and is home to Texas’ various government institutions which may also be of interest to those focusing on public sector contracts.
San Antonio: Military City and Economic Hub
Known as "Military City USA," San Antonio boasts a robust economy driven by military installations, healthcare, and tourism. The city's manufacturing sector encompasses aerospace, automotive, and advanced manufacturing, supported by a skilled workforce and strategic partnerships.
San Antonio is home to major employers such as USAA, H-E-B, and Rackspace, contributing to its status as an economic hub in the region. The city's strong emphasis on innovation and entrepreneurship creates opportunities for tech services companies to collaborate and thrive in diverse industries.
San Antonio and Austin are roughly an hour away. The cities are rapidly combining into a single metropolitan region. With its mature large enterprise companies and diversity of businesses, San Antonio brings a lot of diversity to Austin’s tech and state government ecosystem.
Wrapping Up
The Texas Triangle offers a dynamic landscape for tech services companies seeking growth and expansion. Entrepreneurs can tap into a wealth of opportunities in this vibrant region by leveraging Houston's energy expertise, Dallas's corporate connections, Austin's tech prowess, and San Antonio's economic vitality. Whether you're already in the US or just beginning to target it, the Texas Triangle makes for a powerful strategic headstart.
Visit Us for VixulCon 2024
VixulCon is our closed-door conference for the Vixul tech services ecosystem, including Vixul alumni and prospects, veteran founders, and subject matter experts from the Texas Triangle, the wider United States, and beyond. Interested in dropping by? RSVP here!