Buda, Texas, a small city south of Austin, is emerging as a magnet for aerospace and defense companies, challenging the notion that Central Texas growth in these sectors is centered on the state capital. The latest episode of The Building Texas Show, titled “The Aerospace & Defense Companies Picking Buda Over Austin,” explores how Buda’s economic development strategy is drawing firms away from larger cities like Austin, Round Rock, and Pflugerville.
Host Justin McKenzie sat down with 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, to discuss the city’s rapid growth. According to Storm, aerospace and defense companies are choosing Buda because they need 10,000 to 20,000 square foot spaces rather than large greenfield sites, and they value lower rent and workforce access. “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 from a recent caller.
Key initiatives driving Buda’s growth include 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 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, strengthening the talent pipeline.
Storm highlighted the Buda EDC’s use of rebates rather than abatements, paying incentives only after jobs are delivered. She framed this as a low-risk taxpayer investment tied to a single mandate: economic prosperity. Davidson, who has doubled Chamber membership in two years, described her role as “I want to be where business begins in Buda.” The Greater Buda Chamber rebranded to widen its tent to include South Austin, Mustang Ridge, Luling, and Lockhart businesses, while partnering with anchors like US Foods, Texas Lehigh, and Jardine’s.
The conversation also touched on 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. For business leaders, the implications are clear: Buda offers a viable alternative to Austin for companies seeking space, workforce, and cost advantages in the aerospace and defense sectors. As Storm noted, the real footprint of Central Texas growth is landing in smaller I-35 corridor cities, and Buda is positioning itself at the forefront.
