Buda, Texas is quietly emerging as a magnet for aerospace and defense companies along the I-35 corridor, challenging the assumption that growth in Central Texas is centered on Austin. In the latest episode of The Building Texas Show, titled "The Aerospace & Defense Companies Picking Buda Over Austin," host Justin McKenzie speaks 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, about the city's rapid economic development.
The episode, published July 13, 2026, highlights how companies are seeking 10,000 to 20,000 square foot spaces rather than large greenfield sites, a niche Buda is filling. According to Storm, the narrative that aerospace and defense is coming to Austin is misleading. "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," she said, recounting a recent call from an industry insider. This shift matters because it signals a decentralization of high-tech industries along the corridor, potentially reshaping regional economic patterns.
Key initiatives driving Buda's growth include The Hive incubator, which has moved 60 entrepreneurs through four cohorts in its first year, spanning industries from salons to AI apps to drones. The EDC also launched a new retail incubator 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 a talent pipeline.
Storm emphasized the Buda EDC's use of rebates rather than abatements, paying incentives only after jobs are delivered. This low-risk taxpayer investment, she said, is 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 rebrand widened its reach to include South Austin, Mustang Ridge, Luling, and Lockhart, partnering with anchors like US Foods, Texas Lehigh, and Jardine's.
The implications for the industry and region are significant. As companies seek affordable space and workforce access, smaller cities like Buda could attract firms that might otherwise locate in costlier urban centers. This trend may accelerate as the Austin metro area becomes more crowded and expensive. The episode also touches on Buda's trademarked title as the Wiener Dog Capital of Texas, a Lions Club idea from the 1980s that remains the city's largest annual event.
For listeners, the episode offers an insider perspective on how Buda built momentum in under a year, with conversations about workforce development, incubator programs, and strategic incentives. The full episode is available on platforms like YouTube, Facebook, Instagram, and LinkedIn.
