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Jason Giulietti

The growth of regional distribution in economic development

Business
Wednesday, December 22, 2021

If you're receiving your last-minute gifts and supplies for the holiday season today, it is due to the efforts and hard work of our regional distribution and fulfillment centers.

Over the past year, supply chains and distribution have never been a more prevalent topic of discussion. For consumers, the effects of the supply chain woes are felt in difficulties buying products, facing material shortages, and dealing with backorders of goods. For manufacturers, supply chain disruptions have wreaked havoc on the supply of raw materials to produce goods. Supply chains were already on shaky ground pre-pandemic, but underlying issues magnified themselves during and after the pandemic.

More than ever, industry leaders and developers are focusing on potentially new or different strategies for managing their supply chains, including redesigning supply chains with new technology, increasing their supplier base, and reshoring or near-shoring operations back into the United States.

As adjustments occur, the Texas Innovation Corridor's advantageous location and favorable business climate helped emerge the region as a prime location for many of these companies. Today, the Texas Innovation Corridor hosts more than 240 supply chain-related businesses, providing jobs to more than 12,000 local workers and tax revenues that add to our region's economic prosperity.

The Greater San Marcos Partnership (GSMP), which serves as the economic development organization for Hays and Caldwell counties, focuses on regional distribution as a critical industry for these exact reasons. GSMP actively recruits new businesses and helps expand our existing employers to bring in new, good-paying jobs and substantial capital investment dollars to further our region's economy through strategic initiatives that maximize the region's economic competitiveness.

We have seen incredible results from this strategy for the region's distribution and fulfillment sector operations, including significant investments from name-brand companies.

Leading companies such as Amazon have made significant investments in the region. Since first arriving in the Texas Innovation Corridor in 2015, Amazon has expanded to be our top employer with more than 5,000 jobs. Their four facility footprint within the cities of Kyle, Buda, and San Marcos are a strong example of the region's strategic advantages.

Similarly, FedEx and Lowes have established 350,000 square feet in tow distribution facilities in Kyle, employing approximately 500 employees. Complementing the region's expanding distribution footprint is the expansion of Berry Aviation in San Marcos and the wide variety of other logistic and distribution businesses that service Hays and Caldwell counties.

None of this, of course, is by accident or coincidence.

As part of GSMP's strategy, we leverage the region's strategic location along the I-35 and SH 130 highway systems to market Hays and Caldwell Counties as a central hub for logistics companies. We also work with our workforce development partners to help build the skilled workforce necessary for these regional distributors to thrive in their operations.

As a regional team, we utilize relationships with our community's public, private, and non-profit sectors to make the Texas Innovation Corridor the most attractive place to do business. This winning formula has brought unprecedented interest in our two counties and an incredibly bright future for our region.

When you're considering placing in that last-minute order or running to the store for that item you need, remember the local distributor who makes it possible to fulfill that order. GSMP will continue to do our economic development work to ensure that these companies choose the Texas Innovation Corridor to bring good jobs, new investments, and increased tax base revenues for our communities.

If you want to play a role in our regional approach to economic development, we welcome your participation! Sign up for one of our workgroups at greatersanmarcostx.com/vision2025. I'm always available to answer questions via email at jasong@greatersanmarcostx.com or Twitter @JasonGiulietti.

The GSMP team and I wish you a Merry Christmas, Happy Holidays, and a Happy New Year to you and your families. Thank you.

San Marcos Record

(512) 392-2458
P.O. Box 1109, San Marcos, TX 78666