Why Aerospace and Defense Firms Are Choosing Buda Over Austin

In a recent episode of The Building Texas Show, host Justin McKenzie traveled to Buda, Texas, to explore an overlooked trend in Central Texas economic development: while headlines often tout Austin as the hub for aerospace and defense growth, the actual footprint is landing in smaller I-35 corridor cities like Buda. Jennifer Storm, CEO of the Buda Economic Development Corporation, and Monica Davidson, CEO of the Greater Buda Chamber of Commerce and Buda City Council member, shared insights on how their community is attracting major firms.

"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 recounted a recent caller telling her. These companies are often seeking 10,000 to 20,000 square foot spaces rather than greenfield developments, making Buda an ideal location with its right-sized inventory and lower rents.

Buda's momentum is built on innovative programs like The Hive incubator, which moved 60 entrepreneurs through four cohorts in its first year, spanning industries from salons to AI apps to drones. A new retail incubator is also opening in Buda's restored 1884 train depot on Main Street. Additionally, the Hays CISD teacher externship program placed 17 educators inside local businesses this summer, fostering workforce connections.

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

The episode also touched on Buda's trademarked title as the Wiener Dog Capital of Texas, a Lions Club idea from the 1980s that now anchors the city's largest annual event.