Buda, Not Austin, Becomes Aerospace and Defense Hub on I-35 Corridor

In a recent episode of The Building Texas Show, titled “The Aerospace & Defense Companies Picking Buda Over Austin,” host Justin McKenzie interviews Jennifer Storm, CEO of the Buda Economic Development Corporation, and Monica Davidson, CEO of the Greater Buda Chamber of Commerce and a Buda City Council member. The conversation 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 that offer right-sized space, workforce access, and lower rent.

Storm recounts a recent caller telling her, “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.” The episode, published July 13, 2026, provides an insider look at how Buda built momentum in under a year, with aerospace and defense firms often seeking 10,000 to 20,000 square foot spaces rather than greenfield developments in larger cities.

Buda’s economic development strategy includes The Hive incubator, which moved 60 entrepreneurs through four cohorts in its first year across industries from salons to AI apps to drones. A new retail incubator is 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.

Storm, who recently received recognition from the International Economic Development Council at the Library of Congress, explains that the Buda EDC uses rebates rather than abatements, paying incentives only after jobs are delivered. She frames this as a low-risk taxpayer investment tied to a single mandate: economic prosperity. Davidson, who has doubled Chamber membership in two years, describes her role bluntly: “I want to be where business begins in Buda.”

The episode also delves into the mechanics behind Buda’s growth. 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.

This development has significant implications for the region. As aerospace and defense companies increasingly choose Buda over Austin, Round Rock, and Pflugerville, it signals a shift in economic growth patterns along the I-35 corridor. Smaller cities are becoming attractive alternatives due to lower costs and available space, potentially reshaping the economic landscape of Central Texas. The episode is available now wherever podcasts are heard, and more information can be found on The Building Texas Show’s website and social media platforms.

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