Buda, Texas, a city south of Austin, is emerging as a magnet for aerospace and defense companies, according to the latest episode of The Building Texas Show. The episode, titled The Aerospace & Defense Companies Picking Buda Over Austin, features host Justin McKenzie in conversation with Jennifer Storm, CEO of the Buda Economic Development Corporation (EDC), and Monica Davidson, CEO of the Greater Buda Chamber of Commerce and a Buda City Council member. The discussion challenges the prevailing narrative that Central Texas aerospace and defense growth is an Austin story, arguing instead that the real footprint is landing in smaller I-35 corridor cities like Buda that offer right-sized space, workforce access, and lower rent.
Listeners get an insider look at how Buda built momentum in under a year. Topic threads include why aerospace and defense firms are choosing Buda over Austin, Round Rock, and Pflugerville, often seeking 10,000 to 20,000 square foot spaces rather than greenfield sites. The Hive incubator, which moved 60 entrepreneurs through four cohorts in its first year across industries from salons to AI apps to drones, is highlighted. A new retail incubator opening in Buda's restored 1884 train depot on Main Street is also discussed, along with the Hays CISD teacher externship program placing 17 educators inside local businesses this summer.
Storm is candid about her recent recognition from the International Economic Development Council, accepted at the Library of Congress, and equally candid about the community's positioning against its larger neighbor. "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. Davidson, who has doubled Chamber membership in two years, describes her role bluntly: "I want to be where business begins in Buda."
The episode digs into the mechanics behind the growth. Storm explains that the Buda EDC uses rebates rather than abatements, paying incentives only after jobs are delivered, which she frames as a low-risk taxpayer investment tied to a single mandate: economic prosperity. Davidson details how the Greater Buda Chamber rebrand widened the tent to include South Austin, Mustang Ridge, Luling, and Lockhart businesses, 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 implications of this announcement are significant for the region's economic development. By positioning itself as a viable alternative to Austin, Buda is attracting high-value industries that might otherwise bypass the area. This trend could reshape the economic landscape of the I-35 corridor, distributing growth more evenly and offering opportunities for other smaller cities to emulate Buda's model. The emphasis on rebates over abatements and the focus on right-sized spaces may serve as a blueprint for how smaller communities can compete with larger urban centers for specialized industries.
